Organizational Behaviour

Organizational Behaviour

Previous Questions

Syllabus Conceptual model of organization behaviour;
The individual processes— personality, values and attitude, Perception (also decision making), motivation, learning and reinforcement, work stress and stress management; The dynamics of Organization behaviour—power and politics, conflict and negotiation, leadership process and styles, communication; The Organizational Processes—decision-making, job design; Classical, Neoclassical and Contingency approaches to organizational design (Chapter 15); Organizational theory and design (Chapter 15)— Organizational culture, managing cultural diversity, learning Organization; Organizational change and development (Charles Hill - International Business); Knowledge Based Enterprise—systems and processes; Networked and virtual organizations.

Definition OB is a field of study that investigates the impact that individuals, groups, and structure have on behavior within organizations for the purpose of applying such knowledge toward improving an organization’s effectiveness. Organizational behavior is an applied behavioral science that is built upon contributions from a number of behavioral disciplines.

Multidisciplinary Nature of OB

There are few, if any, simple and universal principles that explain organizational behavior.
Also known as contingency variables - these effect the relationship between the independent and dependent variables in the study of behaviours.

How contingency variables work?
Contingency Variable (Z) Independent Variable (X) Dependent Variable (Y) In American Culture Boss Gives “Thumbs Up” Sign Understood as Complimenting In Iranian or Australian Cultures Understood as Insulting - “Up Yours!”

Challenges and Opportunities of OB or Significance of OB
Increasing people’s skills Empowers managers with Evidence Based Management (EBM) through systematic study to complement their ‘intuition’ or ‘gut feel’ in managing employees Responding to economic pressures Downturn – dealing with layoffs, morale, and encouragement Boom – reward, satisfy, retention, development Globalization pressures Increased Foreign assignments Need to work with transnational teammates/customers Muliculturalism Improving customer service Most businesses are service or quasi-service businesses Employee attitudes and behavior are associated with customer satisfaction. Competitive advantage: Developing HR Diversity at workplace Continuous learning Attracting the best talent Creating Positive Work Environment Networked organization – its implications Conflict resolution Managing rapid technological change Learning to live with flexibility, spontaneity, and unpredictability. OB provides help in understanding a work world of continual change, how to overcome resistance to change, and how to create an organizational culture that thrives on change. Stimulating Innovation to stay relevant in response to tech. change Work life balance of employees 24*7 Connectedness and increased number of inputs in one’s life creating stress – OB can provide evidence based solutions to handle the stress Improving ethical behaviour

Personality Chapter 5: Personality and Values; Preeti Bhaskar’s linkedin presentation

Personality The sum total of ways in which an individual reacts and interacts with others. Macionis define as “It is the constant pattern of thinking, feeling and acting.”

Personality Traits Enduring characteristics that describe an individual’s behaviour Reserved vs. Outgoing. Less intelligent vs. More intelligent. Affected by feelings vs. emotionally stable. Submissive vs. Dominant. Serious vs. happy go lucky. Trusting vs. suspicious. Practical vs. imagination. Tough minded vs. sensitive. Conservative vs. experimenting. Group-dependent vs. self-sufficient. Relaxed vs. tense. Uncontrolled vs. controlled.

Personality Determinants

Myers-Briggs Type Indicator
A personality test that takes into consideration 4 characteristics and classifies people into 1 of 16 personality types. Personality Types Extroverted vs. Introverted (E or I) Sensing vs. Intuitive (S or N) Thinking vs. Feeling (T or F) Judging vs. Perceiving (P or J)

Some examples of MBTI in Organizational context
INTJs are visionaries. ESTJs are organizers. The ENTP type is a conceptualizer.

Big Five Model of Personality Dimensions
Openness to Experience Imaginativeness, artistic, sensitivity, and intellectualism. Conscientiousness Responsible, dependable, persistent, and organized. Extroversion Sociable, gregarious, and assertive Agreeableness Good-natured, cooperative, and trusting. Neuroticism/Emotional Stability Calm, self-confident, secure (positive) versus nervous, depressed, and insecure (negative).

Linking an Individual’s Personality and Values to the Workplace
People high on extraversion fit well with aggressive and team-oriented cultures People high on agreeableness match up better with a supportive organizational climate than one focused on aggressiveness People high on openness to experience fit better in organizations that emphasize innovation rather than standardization.

Major Personality Attributes Influencing OB
Locus of control Machiavellianism Self-esteem Self-monitoring Risk taking Type A personality

The degree to which people believe they are masters of their own fate.
Locus of Control The degree to which people believe they are masters of their own fate. Internals Individuals who believe that they control what happens to them. Externals Individuals who believe that what happens to them is controlled by outside forces such as luck or chance. Machiavellianism Degree to which an individual is pragmatic, maintains emotional distance, and believes that ends can justify means. Alternatively it is a personality trait which sees a person so focused on their own interests they will manipulate, deceive, and exploit others to achieve their goals. (Selfishness)

Risk-Taking • High Risk-taking Managers Make quicker decisions Use less information to make decisions Operate in smaller and more entrepreneurial organizations Low Risk-taking Managers Are slower to make decisions Require more information before making decisions Exist in larger organizations with stable environments • • Risk Propensity – Aligning managers’ risk-taking propensity to job requirements should be beneficial to organizations.

Self-Esteem (SE) Individuals’ degree of liking or disliking themselves. Self-Monitoring Self-monitoring is a personality trait that captures differences in the extent to which people control the image they present to others in social situations. High self-monitors are motivated and skilled at altering their behavior to influence the impressions others have of them.

Personality Types Type A’s
are always moving, walking, and eating rapidly; feel impatient with the rate at which most events take place; strive to think or do two or more things at once; cannot cope with leisure time; are obsessed with numbers, measuring their success in terms of how many or how much of everything they acquire. Type B’s never suffer from a sense of time urgency with its accompanying impatience; feel no need to display or discuss either their achievements or accomplishments; play for fun and relaxation, rather than to exhibit their superiority at any cost; can relax without guilt.

Values and Attitude Preeti Bhaskar’s document

Values As per Edgar Brightman – values are things that people like, cherish, approve, esteem, prize, and desire for. These are the abstract ideas that people prefer as against their opposites.

Importance of Values Provide understanding of the attitudes, motivation, and behaviors of individuals and cultures. Influence our perception of the world around us. Represent interpretations of “right” and “wrong.” Imply that some behaviors or outcomes are preferred over others.

Two types of values – Rokeach Model
Terminal Values Instrumental Values Desirable end-states of existence; the goals that a person would like to achieve during his or her lifetime. Preferable modes of behavior or means of achieving one’s terminal values.

Attitude Attitude can be defined as the mental orientation of a person towards a thing or a person (called ‘attitudinal object’) Behaviour is the actual expression of the attitude through one's actions. Behaviour might not meet one's actual attitude when one tries to hide his/her attitude. (Self- monitoring) Attitude is internal while behaviour is external

For example: “I am scared of spiders”.
ABC model of attitude Components of Attitude Affective Component Behavioral Component Cognitive Component this involves a person’s feelings / emotions about the attitude object. For example: “I am scared of spiders”. this involves a person’s belief / knowledge about an attitude object. For example: “I believe spiders are dangerous”. the way the attitude we have influences how we act or behave. For example: “I will avoid spiders and scream if I see one”.

3 Aspects of Attitude towards Organization
Job Satisfaction Job Involvement Identifying with the job and actively participating in it Organizational Commitment Identifying with the membership of a particular organization, it’s goals, and wishing to maintain that membership

Cognitive Dissonance Cognitive dissonance refers to a situation involving conflicting attitudes, beliefs or behaviors. This produces a feeling of discomfort leading to an alteration in one of the attitudes, beliefs or behaviors to reduce the discomfort and restore balance, etc. For example, when people smoke (behavior) and they know that smoking causes cancer (cognition), they are in a state of cognitive dissonance.

leadership process and styles
Chapter 12; EduTap material Read the summary slide first

Leader Vs. Manager Trait theory Behavioural theory Contingency theory Charismatic leadership Transformational leadership Authentic leadership Challenges?

Categories Functional theory => 'Leadership' is designed into the functions and processes of an organization rather than any particular person himself.

Define leadership and contrast leadership and management
Leadership is the ability to influence a group toward the achievement of a vision or set of goals. Though leadership may come from formal authority, that is not the only source. Not all leaders are managers nor are all managers leaders. Nonsanctioned leadership is often as important or more important than formal influence. Leadership is the ability to influence a group toward the achievement of a vision or set of goals. The source of this influence may be formal, such as that provided by managerial rank in an organization. But not all leaders are managers, nor, for that matter, are all managers leaders. Just because an organization provides its managers with certain formal rights is no assurance they will lead effectively. Nonsanctioned leadership—the ability to influence that arises outside the formal structure of the organization—is often as important or more important than formal influence. In other words, leaders can emerge from within a group as well as by formal appointment. 1

Define leadership and contrast leadership and management
Leaders are needed today: to challenge the status quo, create visions of the future, and inspire organizational members to want to achieve the visions. Managers formulate detailed plans, create efficient organizational structures, and oversee day-to-day operations. Strong leadership and strong management are needed for optimal effectiveness. Organizations need strong leadership and strong management for optimal effectiveness. We need leaders today to challenge the status quo, create visions of the future, and inspire organizational members to want to achieve the visions. We also need managers to formulate detailed plans, create efficient organizational structures, and oversee day-to-day operations. 1

Trait Theories of Leadership
These are theories that consider personal qualities and characteristics that differentiate leaders from nonleaders. The initial efforts to identify a set of traits that leaders share commonly (while others do not!) yielded much confusion untill the arrival of BIG 5 Personality Framework After organizing these traits into the 5 broader traits under BIG 5 – a pattern emerged. It was shown that Extraversion is the most important trait that leaders share.

Summarize the conclusions of trait theories of leadership
As per the trait theory Leaders who like being around people and are able to assert themselves (extraverted), who are disciplined and able to keep commitments they make (conscientious), and who are creative and flexible (open) do have an apparent advantage when it comes to leadership, suggesting good leaders do have key traits in common. The trait approach does have something to offer. Leaders who like being around people and are able to assert themselves (extraverted), who are disciplined and able to keep commitments they make (conscientious), and who are creative and flexible (open) do have an apparent advantage when it comes to leadership, suggesting good leaders do have key traits in common. One reason is that conscientiousness and extraversion are positively related to leaders’ self-efficacy, which explained most of the variance in subordinates’ ratings of leader performance. People are more likely to follow someone who is confident she’s going in the right direction. 1

Another trait that may indicate effective leadership is emotional intelligence (EI). Advocates of EI argue that without it, a person can have outstanding training, a highly analytical mind, a compelling vision, and an endless supply of terrific ideas but still not make a great leader. A core component of EI is empathy. Another trait that may indicate effective leadership is emotional intelligence (EI), discussed in Chapter 4. Advocates of EI argue that without it, a person can have outstanding training, a highly analytical mind, a compelling vision, and an endless supply of terrific ideas but still not make a great leader. This may be especially true as individuals move up in an organization. 8 Why is EI so critical to effective leadership? A core component of EI is empathy. Empathetic leaders can sense others’ needs, listen to what followers say (and don’t say), and read the reactions of others. A leader who effectively displays and manages emotions will find it easier to influence the feelings of followers, by both expressing genuine sympathy and enthusiasm for good performance and by using irritation for those who fail to perform. 1

Conclusions based on the latest findings. Contrary to what we believed 20 years ago and thanks to the Big Five, we can say that traits can predict leadership. Traits do a better job predicting the emergence of leaders and the appearance of leadership than actually distinguishing between effective and ineffective leaders. Based on the latest findings, we offer two conclusions. First, contrary to what we believed 20 years ago and thanks to the Big Five, we can say that traits can predict leadership. Second, traits do a better job predicting the emergence of leaders and the appearance of leadership than actually distinguishing between effective and ineffective leaders. The fact that an individual exhibits the traits and that others consider him or her a leader does not necessarily mean the leader is successful at getting the group to achieve its goals. 1

Behavioural Theories of Leadership
Theories proposing that specific behaviors differentiate leaders from nonleaders. Ohio State Studies found two behaviors that accounted for leadership behavior Initiating structure- the extent to which a leader is likely to define and structure his or her role and those of employees in the search for goal attainment. Consideration the extent to which a person’s job relationships are characterized by mutual trust, respect for employees’ ideas, and regard for their feelings. The most comprehensive theories resulted from the Ohio State Studies in the late 1940s, which sought to identify independent dimensions of leader behavior. Beginning with more than a thousand dimensions, the studies narrowed the list to two that substantially accounted for most of the leadership behavior described by employees: initiating structure and consideration. Initiating structure is the extent to which a leader is likely to define and structure his or her role and those of employees in the search for goal attainment. It includes behavior that attempts to organize work, work relationships, and goals. A leader high in initiating structure is someone who “assigns group members to particular tasks,” “expects workers to maintain definite standards of performance,” and “emphasizes the meeting of deadlines.” Consideration is the extent to which a person’s job relationships are characterized by mutual trust, respect for employees’ ideas, and regard for their feelings. A leader high in consideration helps employees with personal problems, is friendly and approachable, treats all employees as equals, and expresses appreciation and support.

University of Michigan’s studies also came up with two behavioral dimension
The employee-oriented leader emphasized interpersonal relationships by taking a personal interest in the needs of employees and accepting individual differences among them. The production oriented leader emphasized the technical or task aspects of the job, focusing on accomplishing the group’s tasks. Leadership studies at the University of Michigan’s Survey Research Center had similar objectives: to locate behavioral characteristics of leaders that appeared related to performance effectiveness. The Michigan group also came up with two behavioral dimensions: the employee-oriented leader emphasized interpersonal relationships by taking a personal interest in the needs of employees and accepting individual differences among them, and the production oriented leader emphasized the technical or task aspects of the job, focusing on accomplishing the group’s tasks. These dimensions are closely related to the Ohio State dimensions. Employee-oriented leadership is similar to consideration, and production-oriented leadership is similar to initiating structure. In fact, most leadership researchers use the terms synonymously. At one time, the results of testing behavioral theories were thought to be disappointing. However, a more recent review of 160 studies found the followers of leaders high in consideration were more satisfied with their jobs, were more motivated, and had more respect for their leader. Initiating structure was more strongly related to higher levels of group and organization productivity and more positive performance evaluations. 1

Identify the central tenets and main limitations of behavioral theories
Summary of Trait Theories and Behavioral Theories Leaders who have certain traits and who display consideration and structuring behaviors do appear to be more effective. As important as traits and behaviors are in identifying effective or ineffective leaders, they do not guarantee success. The context matters, too. In summary of Trait Theories and Behavioral Theories, leaders who have certain traits and who display consideration and structuring behaviors do appear to be more effective. Future research is needed to integrate these approaches. As important as traits and behaviors are in identifying effective or ineffective leaders, they do not guarantee success. The context matters, too. 1

Situational/Contingency Leadership Theories
Rather than focus on the traits or the behaviour of leader – these theories propose the leadership stype based on the situation 3 main theories we will discuss here Fielder’s Contingency Theory House’s Path-goal theory Hersey and Blanchard’s Situational Theory

Fielder’s Contingency theory
Situational Factors 1. Leader – member relations 2. Task Structure 3. Position of Power Leadership Styles 1. Task Oriented 2. Relationship Oriented It is necessary to match the leader with the situation. Fiedler has identified three contingency dimensions: Leader-member relations—The degree of confidence, trust, and respect members have in their leader Task structure—The degree to which the job assignments are procedural Position power—The degree of influence a leader has over power variables such as hiring, firing, discipline, promotions, and salary increases The next step is to evaluate the situation in terms of these three contingency variables. Leader-member relations are either good or poor. Task structure is either high or low. Position power is either strong or weak. Fiedler states the better the leader-member relations, the more highly structured the job, and the stronger the position power, the more control the leader has. Altogether, by mixing the three contingency variables, there are potentially eight different situations or categories in which leaders could find themselves.

Fielder’s Contingency Theory

Hersey and Blanchard’s Situational Theory
Match the leadership stype with the readiness/maturity of the followers 4 levels of maturity (also called as readiness levels and development levels)

Hersey-Blanchard’s Situational Theory

Four leadership styles under ST
Telling: Being authoritative and directive; giving instructions and expecting them to follow; lease scope for collaboration Selling: Mostly like telling but with an added component of persuading them on why to follow a certain way as they are willing to work Participating: Work along with the employees as they are talented but not willing/not motivated to work; Idea is to motivate them by decentralizing power and overseeing their work Delegating: handover the task of executing daily operations to the employees and come in when there is any special situation/emergency occurs

Robert House’s Path Goal theory

Environmental Factors

Transactional and transformational
Transactional indicates a sense of ‘transaction’ in the relationship between a leader and the followers: You do this and if you do this well you get that. If you fail to do this – you will receive this. . More of an ‘telling’ or ‘authoritarian’ type Transformational leaders go a step further in which their relationship is based on the vision and inspiration they create in the minds of their followers Much more complex than transactional Involves leader using his unique abilities to lead the team and drive the performance of the team

Leader member Exchange Model (LMX)
One type of transactional theory

The leader-member exchange (LMX) theory argues that because of time pressures, leaders establish a special relationship with a small group of their followers. These individuals make up the in-group—they are trusted, get a disproportionate amount of the leader’s attention, and are more likely to receive special privileges. The theory proposes that early in the history of the interaction between a leader and a given follower, the leader implicitly categorizes the follower as an “in” or an “out” and that relationship is relatively stable over time. How the leader chooses who falls into each category is unclear. The leader does the choosing on the basis of the follower’s characteristics. In groups have similar characteristics (see Exhibit 12-2) The theory and research surrounding it provide substantive evidence that leaders do differentiate among followers. Research to test LMX theory has been generally supportive, with substantive evidence that leaders do differentiate among followers; These disparities are far from random; and followers with in-group status will have higher performance ratings, engage in more helping or “citizenship” behaviors at work, and report greater satisfaction with their superior. One study conducted in both Portugal and the United States found that leader–member exchange was associated especially strongly with followers’ commitment to the organization when the leaders were seen as embodying the values and identity of the organization. These positive findings for in-group members shouldn’t be surprising, given our knowledge of self-fulfilling prophecy (see Chapter 6). Leaders invest their resources with those they expect to perform best. And believing in-group members are the most competent, leaders treat them as such and unwittingly fulfill their prophecy. Conversely, a study in Turkey demonstrated that when leaders differentiated strongly among their followers in terms of their relationships (some followers had very positive leader–member exchange, others very poor), employees responded with more negative work attitudes and higher levels of withdrawal behavior. Leader–follower relationships may be stronger when followers have a more active role in shaping their own job performance. Research on 287 software developers and 164 supervisors showed leader–member relationships have a stronger impact on employee performance and attitudes when employees have higher levels of autonomy and a more internal locus of control.

Charismatic Leadership
Charismatic Leadership Theory was proposed by Robert House. Followers make attributes of heroic or extraordinary leadership abilities when they observe certain behaviors (See Exhibit 12-3) General characteristics are: they have vision, they are willing to take personal risk, they are sensitive to followers’ needs, they exhibit extraordinary behaviors. 1

The Dark Side of Charismatic Leadership
Don’t necessarily act in interest of companies. Many have allowed their personal goals to override the goals of the organization. Research has shown that individuals who are narcissistic are also higher in some behaviors associated with charismatic leadership. Some charismatic leaders are too successful convincing followers to pursue a vision that can be disastrous. The Dark Side of Charismatic Leadership is evident. These leaders don’t necessarily act in the best interest of their companies. Many have allowed their personal goals to override the goals of the organization. The results at companies such as Enron, Tyco, WorldCom, and HealthSouth were leaders who recklessly used organizational resources for their personal benefit and executives who violated laws and ethical boundaries to inflate stock prices and allow leaders to cash in millions of dollars in stock options. It’s little wonder research has shown that individuals who are narcissistic are also higher in some behaviors associated with charismatic leadership. It’s not that charismatic leadership isn’t effective; overall, it is. But a charismatic leader isn’t always the answer. Success depends, to some extent, on the situation and on the leader’s vision. Some charismatic leaders—Hitler, for example—are all too successful at convincing their followers to pursue a vision that can be disastrous. 1

Compare and contrast transactional and transformational leadership
A stream of research has focuses on differentiating transformational and transactional leaders. The Ohio State studies, Fiedler’s model, path-goal theory, and the leader participation model—have concerned transactional leaders. These kinds of leaders guide or motivate their followers in the direction of established goals by clarifying role and task requirements. Transformational leaders inspire followers to transcend their own self-interests for the good of the organization. They change followers’ awareness of issues by helping them to look at old problems in new ways; and they are able to excite, arouse, and inspire followers to put out extra effort to achieve group goals. Transformational leadership is built on top of transactional leadership—it produces levels of follower effort and performance that go beyond what would occur with a transactional approach alone. (See Exhibit 12-4) Transactional and transformational leadership complement each other; they aren’t opposing approaches to getting things done. Transformational leadership builds on transactional leadership and produces levels of follower effort and performance beyond what transactional leadership alone can do. The best leaders are transactional and transformational. 1

Compare and contrast charismatic and transformational leadership
Full Range of Leadership Model (See Exhibit 12-5) shows the categories of leadership. First is Laissez-Faire and it is the most passive and least effective type. Management by exception is slightly better. Contingent reward leadership can be effective In the remaining four correspond to transformational leadership. One, Individualized consideration. Two, Intellectual stimulation. Three, inspirational motivation. And, four, Idealized influence 1

Transformational Leadership
Creativity, theirs and others. Decentralization of responsibility. Propensity to take risks. Compensation is geared toward long-term results. Greater agreement among top managers about the organization’s goals. Increase follower self-efficacy, giving the group a “can do” spirit. Transformational leaders are more effective because they are more creative, but also because they encourage those who follow them to be creative, too. Companies with transformational leaders have greater decentralization of responsibility, managers have more propensity to take risks, and compensation plans are geared toward long-term results—all of which facilitate corporate entrepreneurship. One study of information technology workers in China found empowering leadership behavior led to feelings of positive personal control among workers, which increased their creativity at work. Companies with transformational leaders also show greater agreement among top managers about the organization’s goals, which yields superior organizational performance. The Israeli military has seen similar results, showing that transformational leaders improve performance by building consensus among group members. Transformational leaders are able to increase follower self-efficacy, giving the group a “can do” spirit. 1

Authentic Leadership Leaders know who they are
Know what they believe in and value Act on those values and beliefs openly and candidly What Is Authentic Leadership? Leaders know who they are. They know what they believe in and value. And, they act on those values and beliefs openly and candidly. 1

Define authentic leadership and show why effective leaders exemplify ethics and trust
Ethics and Leadership Transformational leaders foster moral virtue when they try to change the attitudes and behaviors of followers. Unethical leaders use their charisma to enhance power over followers, directed toward self-serving ends. An example, when leaders give themselves large bonuses while they seek to cut costs by laying off long-time employees. Only recently have ethicists and leadership researchers begun to consider the ethical implications in leadership. Ethics touches on leadership at a number of junctures. Transformational leaders have been described by one authority as fostering moral virtue when they try to change the attitudes and behaviors of followers. Unethical leaders are more likely to use their charisma to enhance power over followers, directed toward self-serving ends. The issue of abuse of power by leaders, for example, when they give themselves large salaries and bonuses while, at the same time, they seek to cut costs by laying off long-time employees 1

Trust and leadership Trust is a psychological state that exists when you agree to make yourself vulnerable to another because you have positive expectations about how things are going to turn out. Trust is a primary attribute associated with leadership. When trust is broken, it can have serious adverse effects on a group’s performance. Trust is a psychological state that exists when you agree to make yourself vulnerable to another because you have positive expectations about how things are going to turn out. Trust is a primary attribute associated with leadership. When trust is broken, it can have serious adverse effects on a group’s performance. It is evident that it is impossible to lead people who do not trust you. Trust and trust-worthiness modulate the leader’s access to knowledge and cooperation. Followers who trust a leader are confident their rights and interests will not be abused. Transformational leaders create support for their ideas in part by arguing that their direction will be in everyone’s best interests. People are unlikely to look up to or follow someone they perceive as dishonest or likely to take advantage of them. Thus, as you might expect, transformational leaders do generate higher levels of trust from their followers, which in turn is related to higher levels of team confidence and, ultimately, higher levels of team performance. 1

Process of trust, leadership and outcomes
Trust isn’t just about the leader; the characteristics of the followers will also influence the development of trust. What key characteristics lead us to believe a leader is trustworthy? Evidence has identified three: integrity, benevolence, and ability (see Exhibit 12-6). Integrity refers to honesty and truthfulness. It seems the most critical of the three in assessing another’s trustworthiness. Benevolence means the trusted person has your interests at heart, even if yours aren’t necessarily in line with theirs. Ability encompasses an individual’s technical and interpersonal knowledge and skills. Consequences of Trust Trust Encourages Taking Risks Trust Facilitates Information Sharing Trusting Groups Are More effective Trust Enhances Productivity 1

Effectiveness of leadership
Much of an organization’s success or failure is due to factors outside the influence of leadership. In many cases, success or failure is just a matter of being in the right or wrong place at a given time. The attribution theory of leadership says leadership is merely an attribution people make about other individuals. Much of an organization’s success or failure is due to factors outside the influence of leadership. In many cases, success or failure is just a matter of being in the right or wrong place at a given time. The attribution theory of leadership says leadership is merely an attribution people make about other individuals. Thus we attribute to leaders intelligence, outgoing personality, strong verbal skills, aggressiveness, understanding, and industriousness. At the organizational level, we tend to see leaders, rightly or wrongly, as responsible for extremely negative or extremely positive performance. 1

Address challenges to the effectiveness of leadership
Online Leadership Needs research. Today’s managers and employees are increasingly linked by networks rather than geographic proximity. Online leaders have to think carefully about what actions they want their digital messages to initiate. Writing skills are likely to become an extension of interpersonal skills. The questions of how do you lead people who are physically separated from you and with whom you communicate electronically need research. Today’s managers and employees are increasingly linked by networks rather than geographic proximity. We propose that online leaders have to think carefully about what actions they want their digital messages to initiate. They confront unique challenges, the greatest of which appears to be developing and maintaining trust. Identification-based trust, based on a mutual understanding of each other’s intentions and appreciation of the other’s wants and desires, is particularly difficult to achieve without face-to-face interaction. And online negotiations can also be hindered because parties express lower levels of trust. We tentatively conclude that good leadership skills will soon include the abilities to communicate support, trust, and inspiration through keyboarded words and accurately read emotions in others’ messages. In electronic communication, writing skills are likely to become an extension of interpersonal skills. 1

Summary and Implications for Managers
Knowing what makes a good leader should thus be valuable in improving group performance. Search for universal leadership traits failed. Behavioral approach’s contribution was narrowing leadership into task-oriented (initiating structure) and people-oriented (consideration) styles. Research leadership has made contributions to our understanding of leadership effectiveness. Tests and interviews help identify people with leadership qualities. Leadership plays a central part in understanding group behavior, because it’s the leader who usually directs us toward our goals. Knowing what makes a good leader should thus be valuable in improving group performance. The early search for a set of universal leadership traits failed. However, recent efforts using the Big Five personality framework show strong and consistent relationships between leadership and extraversion, conscientiousness, and openness to experience. The behavioral approach’s major contribution was narrowing leadership into task-oriented (initiating structure) and people-oriented (consideration) styles. By considering the situation in which the leader operates, contingency theories promised to improve on the behavioral approach, but only LPC theory has fared well in leadership research. Research on charismatic and transformational leadership has made major contributions to our understanding of leadership effectiveness. Organizations want managers who can exhibit transformational leadership qualities and who have vision and the charisma to carry it out. Effective managers must develop trusting relationships with followers because, as organizations have become less stable and predictable, strong bonds of trust are replacing bureaucratic rules in defining expectations and relationships. Tests and interviews help identify people with leadership qualities. Managers should also consider investing in leadership training such as formal courses, workshops, rotating job responsibilities, coaching, and mentoring. 1

Organizational culture
Chapter 16: Culture;

Organizational Culture
Culture refers to a system of values and norms that are shared among people. Values are abstract ideas about what a group believes to be good, right, and desirable (both end state related and behavioural). Norms mean the social rules and guidelines that prescribe appropriate behavior in particular situations. Values and norms express themselves as the behavior patterns or style of an organization that new employees are automatically encouraged to follow by their fellow employees. Although an organization's culture is rarely static, it tends to change relatively slowly.

Common characteristics of Organizational Culture
Research identifies seven primary characteristics that capture the essence of an organization’s culture: Innovation and risk taking. Attention to detail. Outcome orientation. People orientation. Team orientation. Aggressiveness. Stability. Research identifies seven primary characteristics that capture the essence of an organization’s culture. First is innovation and risk taking, which is the degree to which employees are encouraged to do both. Second is attention to detail or the degree to which employees are expected to exhibit precision, analysis, and attention to detail. Third is outcome orientation or The degree to which management focuses on results or outcomes rather than on the techniques and processes used to achieve them. Fourth is people orientation, which is the degree to which management decisions consider the effect of outcomes on people within the organization. Fifth is team orientation described as the degree to which work activities are organized around teams rather than individuals. Sixth is aggressiveness, said to be the degree to which people are aggressive and competitive rather than easygoing. And seventh is Stability. It is the degree to which activities emphasize maintaining the status quo. Each of the characteristics exists on a continuum from low to high. 1

How to find Organizational Culture?
Organizational culture is concerned with employees’ perception of the characteristics of the culture—not whether they like them Research asks questions Does it encourage teamwork? Does it reward innovation? Does it stifle initiative? It differs from job satisfaction Job satisfaction is evaluative. Organizational culture is descriptive. Organizational culture is concerned with employees’ perception of the characteristics of the culture—not whether they like them. Research has sought to measure how employees see their organization/ It asks such questions as , “Does it encourage teamwork?”, “Does it reward innovation?”, and “Does it stifle initiative?” Organizational culture differs from job satisfaction in that job satisfaction is evaluative while organizational culture is descriptive. 1

Functions of culture Boundary-defining role
Conveys a sense of identity for members Facilitates the generation of commitment Enhances the stability of the social system Serves as a sense-making and control mechanism Guides and shapes attitudes and behavior of employees Cultures can be positive or negative for organizations. Cultures can be positive or negative for organizations. The culture’s functions include a Boundary-defining role. It conveys a sense of identity for members. It facilitates the generation of commitment. It enhances the stability of the social system. And, culture serves as a sense-making and control mechanism; guides and shapes attitudes and behavior of employees. 1

How a Culture Begins Ultimate source of an organization’s culture is its founders. Founders have vision of what the organization should be. Unconstrained by previous ideologies or customs. New organizations are typically small; facilitates the founders’ imparting of their vision on all organizational members. So, “How does a Culture Begin?” Ultimate source of an organization’s culture is its founders. Founders have vision of what the organization should be. Unconstrained by previous ideologies or customs. New organizations are typically small; facilitates the founders’ imparting of their vision on all organizational members. 1

Sustaining culture Sustain Through Selection Top Management
The explicit goal of the selection process is to identify and hire individuals with the knowledge, skills, and abilities to perform successfully. Top Management The actions of top management also have a major impact on the organization’s culture. Not writing the detailed step by step process of how to sustain organizational culture. If any previous question is asked in that regard – I will go back to resources and write that stuff out. So how can cultures be sustained? The first way is in selection of employees. The explicit goal of the selection process is to identify and hire individuals with the knowledge, skills, and abilities to perform successfully. The final decision, because it’s significantly influenced by the decision maker’s judgment of how well the candidates will fit into the organization, identifies people whose values are essentially consistent with at least a good portion of the organization’s. Selection also provides information to applicants. Those who perceive a conflict between their values and those of the organization can remove themselves from the applicant pool. Selection thus becomes a two-way street, allowing employer or applicant to avoid a mismatch and sustaining an organization’s culture by selecting out those who might attack or undermine its core values. The actions of top management also have a major impact on the organization’s culture. Through words and behavior, senior executives establish norms that filter through the organization about, for instance, whether risk taking is desirable, how much freedom managers give employees, what is appropriate dress, and what actions earn pay raises, promotions, and other rewards. 1

Transmission Culture is transmitted to employees through Stories,
Rituals, Material symbols, and Language. The organizational culture is transmitted to employees through several communication channels. First is stories. Stories such as these circulate through many organizations, anchoring the present in the past and legitimating current practices. They typically include narratives about the organization’s founders, rule breaking, rags-to riches successes, reductions in the workforce, relocation of employees, reactions to past mistakes, and organizational coping. Employees also create their own narratives about how they came to either fit or not fit with the organization during the process of socialization, including first days on the job, early interactions with others, and first impressions of organizational life. Second is rituals. These are repetitive sequences of activities that express and reinforce the key values of the organization. Third is material symbols. These are such things as the layout of corporation headquarters, the types of automobile top executives are given, aircraft, size of offices, or executive perks. These convey to employees who is important, the degree of egalitarianism top management desires, and the kinds of behavior that are appropriate, such as risk taking, conservative, authoritarian, participative, individualistic, or social. Fourth is language. Many organizations and subunits within them use language to help members identify with the culture, attest to their acceptance of it, and help preserve it. Unique terms describe equipment, officers, key individuals, suppliers, customers, or products that relate to the business. New employees may at first be overwhelmed by acronyms and jargon, that, once assimilated, act as a common denominator to unite members of a given culture or subculture. 1

How can management create a more ethical culture?
Be a visible role model. Communicate ethical expectations. Provide ethical training. Reward ethical acts and punish unethical ones. Provide protective mechanisms. How can management create a more ethical culture? Be a visible role model. Employees look to top management behavior as a benchmark. Communicate ethical expectations. A code of ethics can minimize ethical ambiguities. Provide ethical training. Training sessions should reinforce standards of conduct and clarify permissible practices. Visibly reward ethical acts and punish unethical ones. Performance appraisal of managers should include analysis of behavior against code of ethics. Provide protective mechanisms. Create a support network of ethical counselors, ombudsmen, or ethics officers. 1

Describe a positive organizational culture
A positive organizational culture emphasizes building on employee strengths, rewards more than it punishes, and emphasizes individual vitality growth. There is a trend today for organizations to attempt to create a positive organizational culture. A positive organizational culture emphasizes building on employee strengths, rewards more than it punishes, and emphasizes individual vitality growth. 1

Identify characteristics of a spiritual culture
What Is Spirituality? Workplace spirituality is not about organized religious practices. It is not about God or theology. Workplace spirituality recognizes that people have an inner life that nourishes and is nourished by meaningful work that takes place in the context of community. Let’s begin by asking, “What Is Spirituality?” Workplace spirituality is not about organized religious practices. It is not about God or theology. Workplace spirituality recognizes that people have an inner life that nourishes and is nourished by meaningful work that takes place in the context of community. 1

Identify characteristics of a spiritual culture
Spiritual organizations promote the below values: : Benevolence. Strong sense of purpose. Trust and respect. Open-mindedness. The concept of workplace spirituality draws on our previous discussions of values, ethics, motivation, and leadership. Although research remains preliminary, several cultural characteristics tend to be evident in spiritual organizations. First is benevolence. Spiritual organizations value showing kindness towards other and promoting the happiness of employees and other organizational stakeholders. Second is a strong sense of purpose. Spiritual organizations build their cultures around a meaningful purpose. Although profits may be important, they’re not the primary value of the organization. Third is Trust and respect. Spiritual organizations are characterized by mutual trust, honesty, and openness. Employees are treated with esteem and value, consistent with the dignity of each individual. Fourth is open-mindedness. Spiritual organizations value flexible thinking and creativity among employees. 1

Exhibit 16-6 depicts organizational culture as an intervening variable. Employees form an overall subjective perception of the organization based on factors such as degree of risk tolerance, team emphasis, and support of people. This overall perception becomes, in effect, the organization’s culture or personality and affects employee performance and satisfaction, with stronger cultures having greater impact. Just as people’s personalities tend to be stable over time, so too do strong cultures. This makes a strong culture difficult for managers to change if it becomes mismatched to its environment. But as this chapter’s Point/Counterpoint demonstrates, changing an organization’s culture is a long and difficult process. Thus, at least in the short term, managers should treat their organization’s culture as relatively fixed. One of the most important managerial implications of organizational culture relates to selection decisions. Hiring individuals whose values don’t align with those of the organization is likely to yield employees who lack motivation and commitment and are dissatisfied with their jobs and the organization. Not surprisingly, employee “misfits” have considerably higher turnover rates. An employee’s performance also depends to a considerable degree on knowing what to do and not do. Understanding the right way to do a job indicates proper socialization. As a manager, you can shape the culture of your work environment. All managers can especially do their part to create an ethical culture and to consider spirituality and its role in creating a positive organizational culture. 1

Perception Chapter 6: Perception and Individual Decision Making;

Define perception and explain the factors that influence it
Perception is an intellectual process of transforming sensory stimuli to meaningful information. It is the process of interpreting something that we see or hear in our mind and use it later to judge and give a verdict on a situation, person, group etc. It is important to the study of OB because peoples’ behaviors are based on their perception of what reality is, not on reality itself. Perception is a process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment. It is important to the study of OB because peoples’ behaviors are based on their perception of what reality is, not on reality itself.

Define perception and explain the factors that influence it
Factors that shape and can distort perception include the perceiver, the target, or the situation. When an individual looks at a target and attempts to interpret what he or she sees, that interpretation is heavily influenced by personal characteristics of the individual perceiver. The more relevant personal characteristics affecting perception of the perceiver are attitudes, motives, interests, past experiences, and expectations.

Determination depends on three factors: Distinctiveness Consensus
Explain attribution theory and list the three determinants of attribution Attribution theory suggests that when we observe an individual’s behavior, we attempt to determine whether it was internally or externally caused. Determination depends on three factors: Distinctiveness Consensus Consistency Attribution theory suggests that when we observe an individual’s behavior, we attempt to determine whether it was internally or externally caused. That determination depends largely on three factors: These are Distinctiveness, Consensus, Consistency. We’ll talk more about each these in a minute.

Externally caused - resulting from outside causes.
Clarification of the differences between internal and external causation: Internally caused - those that are believed to be under the personal control of the individual. Externally caused - resulting from outside causes. First, let’s clarify the differences between internal and external causation. Internally caused behaviors are those that are believed to be under the personal control of the individual. Externally caused behavior is seen as resulting from outside causes; that is, the person is seen as having been forced into the behavior by the situation.

Explain attribution theory and list the three determinants of attribution
Now, we look at each of the three determinants in Attribution Theory. These include Distinctiveness, which refers to whether an individual displays different behaviors in different situations. Consensus occurs if everyone who is faced with a similar situation responds in the same way. Consistency in a person’s actions.

Explain attribution theory and list the three determinants of attribution
Fundamental Attribution Error We have a tendency to underestimate the influence of external factors and overestimate the influence of internal or personal factors. Self-serving Bias Individuals attribute their own successes to internal factors. There are a couple of confounding concepts that impinge on Attribute Theory. First, a Fundamental Attribution Error is that we have a tendency to underestimate the influence of external factors and overestimate the influence of internal or personal factors. In addition, Self-serving Bias is a tendency for individuals to attribute their own successes to internal factors such as ability or effort while putting the blame for failure on external factors such as luck.

Shortcuts in perception
Selective perception Halo effect Stereotyping Contrast effect

Identify the shortcuts individuals use in making judgments about others
Selective Perception Any characteristic that makes a person, object, or event stand out will increase the probability that it will be perceived. Since we can’t observe everything going on about us, we engage in selective perception. A classic example: Dearborn and Simon We use a number of shortcuts when we judge others. An understanding of these shortcuts can be helpful toward recognizing when they can result in significant distortions. Let’s begin with selective perception. Any characteristic that makes a person, object, or event stand out will increase the probability that it will be perceived. Since we can’t observe everything going on about us, we engage in selective perception. As a classic example take Dearborn and Simon, who performed a perceptual study in which 23 business executives read a comprehensive case describing the organization and activities of a steel company. The results along with other results of the study, led the researchers to conclude that the participants perceived aspects of a situation that were specifically related to the activities and goals of the unit to which they were attached. A group’s perception of organizational activities is selectively altered to align with the vested interests they represent.

Halo Effect The halo effect occurs when we draw a general impression on the basis of a single characteristic. The second shortcut is called the Halo Effect. The halo effect occurs when we draw a general impression on the basis of a single characteristic. This phenomenon frequently occurs when students appraise their classroom instructor. Propensity for halo effect to operate is not random. The reality of the halo effect was confirmed in a classic study. Subjects were given a list of traits such as intelligent, skillful, practical, industrious, determined, and warm, and were asked to evaluate the person to whom those traits applied. When the word “warm” was substituted with “cold” the subjects changed their evaluation of the person. The experiment showed that subjects were allowing a single trait to influence their overall impression of the person being judged. Research suggests that it is likely to be most extreme when the traits to be perceived are ambiguous in behavioral terms, when the traits have moral overtones, and when the perceiver is judging traits with which he or she has had limited experience.

Contrast Effects We do not evaluate a person in isolation. Our reaction to one person is influenced by other persons we have recently encountered. For example, an interview situation in which one sees a pool of job applicants can distort perception. Distortions in any given candidate’s evaluation can occur as a result of his or her place in the interview schedule. The third shortcut is the Contrast Effects. We do not evaluate a person in isolation. Our reaction to one person is influenced by other persons we have recently encountered. For example, an interview situation in which one sees a pool of job applicants can distort perception. Distortions in any given candidate’s evaluation can occur as a result of his or her place in the interview schedule.

Stereotyping Judging someone on the basis of our perception of the group to which he or she belongs. This is a means of simplifying a complex world, and it permits us to maintain consistency. From a perceptual standpoint, if people expect to see these stereotypes, that is what they will perceive. The fourth shortcut is Stereotyping. Stereotyping is judging someone on the basis of our perception of the group to which he or she belongs. Generalization is not without advantages. It is a means of simplifying a complex world, and it permits us to maintain consistency. The problem, of course, is when we inaccurately stereotype. In organizations, we frequently hear comments that represent stereotypes based on gender, age, race, ethnicity, and even weight. From a perceptual standpoint, if people expect to see these stereotypes, that is what they will perceive, whether or not they are accurate.

Applications of Shortcuts in Organizations
Employment Interview Evidence indicates that interviewers make perceptual judgments that are often inaccurate. Agreement among interviewers is often poor. Performance Expectations Evidence demonstrates that people will attempt to validate their perceptions of reality, even when those perceptions are faulty. Self-fulfilling prophecy or Pygmalion effect characterizes the fact that people’s expectations determine their behavior. Expectations become reality. Let’s look at some Specific Applications of Shortcuts in Organizations. The first application in the Employment Interview. Evidence indicates that interviewers make perceptual judgments that are often inaccurate. In addition, agreement among interviewers is often poor. Different interviewers see different things in the same candidate and thus arrive at different conclusions about the applicant. Interviewers generally draw early impressions that become very quickly entrenched. Studies indicate that most interviewers’ decisions change very little after the first four or five minutes of the interview. Because interviews usually have so little consistent structure and interviewers vary in terms of what they are looking for in a candidate, judgments of the same candidate can vary widely. The second application of shortcuts is in Performance Expectations. Evidence demonstrates that people will attempt to validate their perceptions of reality, even when those perceptions are faulty. Self-fulfilling prophecy or Pygmalion effect characterizes the fact that people’s expectations determine their behavior. Expectations become reality. A study was undertaken with 105 soldiers in the Israeli Defense Forces who were taking a fifteen-week combat command course. Soldiers were randomly divided and identified as having high potential, normal potential, and potential not known. Instructors got better results from the high potential group because they expected it confirming the effect of a self-fulfilling prophecy.

Applications of Shortcuts in Organizations
Performance Evaluation An employee’s performance appraisal is very much dependent on the perceptual process. Many jobs are evaluated in subjective terms. Subjective measures are, by definition, judgmental. What the evaluator perceives to be good or bad employee characteristics or behaviors will significantly influence the outcome of the appraisal. The third application of shortcuts is in Performance Evaluation. An employee’s performance appraisal is very much dependent on the perceptual process. Although the appraisal can be objective, many jobs are evaluated in subjective terms. Subjective measures are, by definition, judgmental. To the degree that managers use subjective measures in appraising employees, what the evaluator perceives to be good or bad employee characteristics or behaviors will significantly influence the outcome of the appraisal.

Explain the link between perception and decision-making
More and more organizations are empowering non-managerial employees with job-related decision-making historically reserved for managers. Decision-making occurs as a reaction to a problem. It inherently involves the perceptual process. One person’s problem is another’s satisfactory state of affairs. So awareness that a problem exists and that a decision might or might not be needed is a perceptual issue. Every decision requires interpretation and evaluation of information Alternatives will be developed, and the strengths and weaknesses of each will need to be evaluated. Throughout the entire decisionmaking process, perceptual distortions often surface that can bias analysis and A number of organizations in recent years have been empowering their non-managerial employees with job-related decision-making authority that historically was reserved for managers. Usually, Decision-making occurs as a reaction to a problem. There is a discrepancy between some current state of affairs and some desired state, requiring consideration of alternative courses of action. One person’s problem is another’s satisfactory state of affairs. Every decision requires interpretation and evaluation of information. The perceptions of the decision maker will address these two issues: Data are typically received from multiple sources. Which data are relevant to the decision and which are not? Alternatives will be developed, and the strengths and weaknesses of each will need to be evaluated. Finally, throughout the entire decisionmaking process, perceptual distortions often surface that can bias analysis and conclusions.

Perception How do employees perceive the manager? How do employees perceive their jobs? How do employees perceive opportunity at the company? Do employees distort reality? The concepts presented in this chapter began with a discussion of Perception. Individuals base their behavior not on the way their external environment actually is but rather on what they see or believe it to be. Whether a manager successfully plans and organizes the work of employees and actually helps them to structure their work more efficiently and effectively is far less important than how employees perceive the manager’s efforts. Employees judge issues such as fair pay, performance appraisals, and working conditions in very individual ways. To influence productivity, we need to assess how workers perceive their jobs. Absenteeism, turnover, and job satisfaction are also reactions to an individual’s perceptions. Dissatisfaction with working conditions and the belief that an organization lacks promotion opportunities are judgments based on attempts to create meaning in the job. The employee’s conclusion that a job is good or bad is an interpretation. Managers must spend time understanding how each individual interprets reality and, when there is a significant difference between what someone sees and what exists, try to eliminate the distortions.

Apply the rational model of decision-making and contrast it with bounded rationality and intuition
The Six steps of the Rational Decision-Making process are listed in Exhibit 6–3. They begin with Step 1 which is Defining the problem. A problem is a discrepancy between an existing and a desired state of affairs. Many poor decisions can be traced to the decision maker overlooking a problem or defining the wrong problem. The second step is to Identify the decision criteria important to solving the problem. The decision maker determines what is relevant in making the decision. Any factors not identified in this step are considered irrelevant. This brings in the decision maker’s interests, values, and similar personal preferences. The third step is to Weight the previously identified criteria in order to give them the correct priority in the decision. In Step 4, we generate possible options that could succeed in resolving the problem. Step five has us rate each option on each criterion. Critically analyze and evaluate each option. The strengths and weaknesses of each option become evident as they are compared with the criteria and weights established in the second and third steps. And lastly is to compute the optimal decision. Evaluate each option against the weighted criteria and select the alternative with the highest total score.

Assumptions of the Model The decision maker has complete information,
Apply the rational model of decision-making and contrast it with bounded rationality and intuition Assumptions of the Model The decision maker has complete information, And is able to identify all the relevant options in an unbiased manner, and Chooses the option with the highest utility. Most decisions in the real world don’t follow the rational model. Assumptions of the Model. The decision maker has complete information, is able to identify all the relevant options in an unbiased manner, and chooses the option with the highest utility. Most decisions in the real world don’t follow the rational model. People are usually content to find an acceptable or reasonable solution to a problem rather than an optimal one. Choices tend to be limited to the neighborhood of the problem symptom and the current alternative. As one expert in decision making put it, “Most significant decisions are made by judgment, rather than by a defined prescriptive model.” People are remarkably unaware of making suboptimal decisions.

Bounded rationality is the idea that in decision- making, rationality of individuals is limited by the information they have, the cognitive limitations of their minds, and the finite amount of time they have to make a decision Most people respond to a complex problem by reducing the problem to a level at which it can be readily understood. Individuals operate within the confines of bounded rationality. They construct simplified models that extract the essential features. Perhaps a better definition of how a majority of decision are made is Bounded Rationality. When faced with a complex problem, most people respond by reducing the problem to a level at which it can be readily understood. This is because the limited information-processing capability of human beings makes it impossible to assimilate and understand all the information necessary to optimize. People satisfice, that is they seek solutions that are satisfactory and sufficient. Individuals operate within the confines of bounded rationality. They construct simplified models that extract the essential features.

How does bounded rationality work?
Apply the rational model of decision-making and contrast it with bounded rationality and intuition How does bounded rationality work? Once a problem is identified, the search for criteria and options begins. Identify a limited list made up of the more conspicuous choices, which are easy to find, tend to be highly visible, and they will represent familiar criteria and previously tried-and-true solutions. Once this limited set of options is identified, the decision maker will begin reviewing it. How does bounded rationality work? Once a problem is identified, the search for criteria and options begins. The decision maker will identify a limited list made up of the more conspicuous choices, which are easy to find, tend to be highly visible, and they will represent familiar criteria and previously tried-and-true solutions. Once this limited set of options is identified, the decision maker will begin reviewing it. The decision maker will begin with options that differ only in a relatively small degree from the choice currently in effect. The first option that meets the “good enough” criterion ends the search. Satisficing is not always a bad idea. It is a simple process may frequently be more sensible than the traditional rational decision-making model.

To use the rational model in the real world, you need to gather a great deal of information about all the options, compute applicable weights, and then calculate values across a huge number of criteria. To use the rational model in the real world, you need to gather a great deal of information about all the options, compute applicable weights, and then calculate values across a huge number of criteria. All these processes can cost time, energy, and money. If there are many unknown weights and preferences, the fully rational model may not be any more accurate than a best guess. Sometimes a fast-and-frugal process of solving problems might be your best option.

Intuition is the ability to acquire knowledge without recourse to conscious reasoning; It relies on links between disparate pieces of information; it’s fast; and it’s affectively charged, meaning it usually engages the emotions. The key is neither to abandon nor rely solely on intuition but to supplement it with evidence and good judgment. Another important decision-making technique is Intuition Perhaps the least rational way of making decisions is intuitive decision making, an unconscious process created from distilled experience. It occurs outside conscious thought; it relies on holistic associations, or links between disparate pieces of information; it’s fast; and it’s affectively charged, meaning it usually engages the emotions. While intuition isn’t rational, it isn’t necessarily wrong. Nor does it always contradict rational analysis; rather, the two can complement each other. For most of the twentieth century, experts believed decision makers’ use of intuition was irrational or ineffective. We now recognize that rational analysis has been overemphasized and, in certain instances, relying on intuition can improve decision-making. Because it is so unquantifiable, it’s hard to know when our hunches are right or wrong. The key is neither to abandon nor rely solely on intuition but to supplement it with evidence and good judgment.

List and explain the common decision biases or errors
Overconfidence Bias Individuals whose intellectual and interpersonal abilities are weakest are most likely to overestimate their performance and ability. Anchoring Bias Fixating on initial information as a starting point and failing to adequately adjust for subsequent information. The first is Overconfidence Bias. Individuals whose intellectual and interpersonal abilities are weakest are most likely to overestimate their performance and ability. The tendency to be too confident about their ideas might keep some from planning how to avoid problems that arise. Investor overconfidence operates in a variety of ways. People think they know more than they do, and it costs them. Investors, especially novices, overestimate not just their own skill in processing information, but also the quality of the information they’re working with. Second is Anchoring Bias. This is fixating on initial information as a starting point and failing to adequately adjust for subsequent information. Anchors are widely used by people in advertising, management, politics, real estate, and lawyers—where persuasion skills are important. Any time a negotiation takes place, so does anchoring.

Confirmation Bias Type of selective perception. Seek out information that reaffirms past choices, and discount information that contradicts past judgments. Availability Bias Tendency for people to base judgments on information that is readily available. Third bias is Confirmation Bias. It is a type of selective perception. Here we seek out information that reaffirms past choices, and discount information that contradicts past judgments. Fourth is Availability Bias. Tendency for people to base judgments on information that is readily available.

Escalation of Commitment Staying with a decision even when there is clear evidence that it’s wrong. Randomness Error Decision-making becomes impaired when we try to create meaning out of random events. Fifth is Escalation of Commitment. This is staying with a decision even when there is clear evidence that it’s wrong. People who carefully gather and consider information consistent with the rational decision-making model are more likely to engage in escalation of commitment than those who spend less time thinking about their choices. Sixth is Randomness Error. Decision-making becomes impaired when we try to create meaning out of random events.

Risk Aversion Risk-averse employees will stick with the established way of doing their jobs, rather than taking a chance on innovative or creative methods. Hindsight Bias Tendency to believe falsely that one has accurately predicted the outcome of an event, after that outcome is actually known. Seventh is Risk Aversion. This is the tendency to prefer a sure thing instead of a risky outcome is risk aversion. Risk aversion has important implications. Risk-averse employees will stick with the established way of doing their jobs, rather than taking a chance on innovative or creative methods. Ambitious people with power that can be taken away (most managers) appear to be especially risk averse, perhaps because they don’t want to lose on a gamble everything they’ve worked so hard to achieve. Because people are less likely to escalate commitment where there is a great deal of uncertainty, the implications of risk aversion aren’t all bad. When a risky investment isn’t paying off, most people would rather play it safe and cut their losses, but if they think the outcome is a sure thing, they’ll keep escalating. Risk preference is sometimes reversed: people prefer to take their chances when trying to prevent a negative outcome. Trying to cover up wrongdoing instead of admitting a mistake, despite the risk of truly catastrophic press coverage or even jail time, is another example. People will more likely engage in risk-seeking behavior for negative outcomes, and risk-averse behavior for positive outcomes, when under stress. Last is Hindsight Bias. This is the tendency to believe falsely that one has accurately predicted the outcome of an event, after that outcome is actually known. Hindsight bias reduces our ability to learn from the past.

Performance Evaluations
Explain how individual differences and organizational constraints affect decision-making Performance Evaluations The criteria of their evaluation impacts what decisions and how they make them Reward Systems Incentives influence Formal Regulations Rules and regulations System Imposed Time Constraints Limited time Historical Precedents Past behaviour Organizational constraints that impinge on decision making begin with the Performance Evaluation. Managers are strongly influenced in their decision making by the criteria by which they are evaluated. Their performance in decision-making will reflect expectation. And the Reward Systems influences decision makers by suggesting to them what choices are preferable in terms of personal payoff. Next impediment is Formal Regulations. Organizations create rules, policies, procedures, and other formalized regulations to standardize the behavior of their members. Another blocker is System-Imposed Time Constraints. Organizations impose deadlines on decisions. Decisions must be made quickly in order to stay ahead of the competition and keep customers satisfied. Almost all important decisions come with explicit deadlines. Lastly Historical Precedents can serve to impede decision-making. Decisions have a context. Individual decisions are more accurately characterized as points in a stream of decisions. Decisions made in the past are ghosts, which continually haunt current choices. It is common knowledge that the largest determining factor of the size of any given year’s budget is last year’s budget.

Contrast the three ethical decision-criteria
Utilitarian criterion decisions are made solely on the basis of their outcomes or consequences. Focus on rights calls on individuals to make decisions consistent with fundamental liberties and privileges as set forth in documents such as the Bill of Rights. Justice based Impose and enforce rules fairly and impartially to ensure justice or an equitable distribution of benefits and costs. Global organizations must establish ethical principles for decision makers in countries such as India and China and modify them to reflect cultural norms if they want to uphold high standards and consistent practices. Ethical considerations should be an important criterion in organizational decision-making. Three Ethical Decision Criteria include the Utilitarian criterion, which is when decisions are made solely on the basis of their outcomes or consequences. The Focus on rights calls on individuals to make decisions consistent with fundamental liberties and privileges as set forth in documents such as the Bill of Rights. A third criterion is to impose and enforce rules fairly and impartially to ensure justice or an equitable distribution of benefits and costs. Union members typically favor this view. Each criterion has advantages and liabilities. A focus on utilitarianism promotes efficiency and productivity, but it can sideline the rights of some individuals, particularly those with minority representation. The use of rights protects individuals from injury and is consistent with freedom and privacy, but it can create a legalistic environment that hinders productivity and efficiency. Public concern about individual rights and social justice suggests managers should develop ethical standards based on nonutilitarian criteria. A focus on justice protects the interests of the underrepresented and less powerful, but it can encourage a sense of entitlement that reduces risk taking, innovation, and productivity. There are no global ethical standards, as contrasts between Asia and the West illustrate. Although ethical standards may seem ambiguous in the West, criteria defining right and wrong are actually much clearer there than in Asia, where few issues are black and white and most are gray. Global organizations must establish ethical principles for decision makers in countries such as India and China and modify them to reflect cultural norms if they want to uphold high standards and consistent practices.

Define creativity and discuss the three-component model of creativity
Expertise Creativity Creative Thinking Skills Creativity is the ability to produce novel and useful ideas. These are ideas that are different from what has been done before, but that are also appropriate to the problem or opportunity presented. Creative Potential. Most people have creative potential. People differ in their inherent creativity. A study of lifetime creativity of 461 men and women found that less than one percent were exceptionally creative. The Three-Component Model of Creativity proposes that individual creativity essentially requires expertise, creative-thinking skills, and intrinsic task motivation. Expertise is the foundation for all creative work. The potential for creativity is enhanced when individuals have abilities, knowledge, proficiencies, and similar expertise in their field of endeavor. Creative thinking skills encompasses personality characteristics associated with creativity, the ability to use analogies, as well as the talent to see the familiar in a different light. Intrinsic task motivation includes the desire to work on something because it’s interesting, involving, exciting, satisfying, or personally challenging. This turns creativity potential into actual creative ideas. It determines the extent to which individuals fully engage their expertise and creative skills. Intrinsic Task Motivation Creativity is the ability to produce novel and useful ideas.

Individual Decision-making Analyze the situation Be aware of biases Combine rational and intuition Enhance creativity We then looked at individual decision-making. Individual Decision Making. Individuals think and reason before they act. This is why an understanding of how people make decisions can be helpful for explaining and predicting their behavior. In some decision situations, people follow the rational decision-making model. But few important decisions are simple or unambiguous enough for the rational model’s assumptions to apply. So we find individuals looking for solutions that satisfice rather than optimize, injecting biases and prejudices into the decision process, and relying on intuition. What can managers do to improve their decision-making? We offer four suggestions. Begin by Analyzing the situation. Adjust your decision-making approach to the national culture you’re operating in and to the criteria your organization evaluates and rewards. If you’re in a country that doesn’t value rationality, don’t feel compelled to follow the rational decision-making model or to try to make your decisions appear rational. Similarly, organizations differ in the importance they place on risk, the use of groups, and the like. Adjust your decision approach to ensure it’s compatible with the organization’s culture. Second, be aware of biases. Then try to minimize their impact. Exhibit 6-5 offers some suggestions. Third, combine rational analysis with intuition. These are not conflicting approaches to decision making. By using both, you can actually improve your decision-making effectiveness. As you gain managerial experience, you should feel increasingly confident in imposing your intuitive processes on top of your rational analysis. Finally, try to enhance your creativity. Actively look for novel solutions to problems, attempt to see problems in new ways, and use analogies. Try to remove work and organizational barriers that might impede your creativity.

Motivation EduTap’s material; Chapter 7: Motivational concepts;
Only covered the 4 classical/early researches – Maslow’s, XY theoy, 2 Factor theory, and McClelland’s 3 needs theories; Need to revisit based on the previous questions Need to study Expectancy theory of motivation Chapter 7 introduces us to the concepts of motivation. These are topics that pervade the workplace providing opportunity for managers and leaders to be more effective and efficient in accomplishing work. So, this is an important set of concepts to focus on.

Chapter 7 Learning Objectives
After studying this chapter you should be able to: Describe the three key elements of motivation. Identify early theories of motivation and evaluate their applicability today. Apply the predictions of self-determination theory to intrinsic and extrinsic rewards. Understand the implications of employee engagement for management. Compare and contrast goal setting theory and management by objectives. Contrast reinforcement theory and goal-setting theory. Demonstrate how organizational justice is a refinement of equity theory. Apply the key tenets of expectancy theory to motivating employees. Compare contemporary theories of motivation. We begin this chapter with a definition of the nine learning objectives defined for chapter’s contents. We will discuss each of these in some detail.

Describe the three key elements of motivation
Motivation is considered to be the process of arousing and sustaining goal-oriented behaviour. Motivation is something which motivates. It is an act or a process which gives people a reason to do something in a particular way, or an explanation for the repeated behaviours, needs, and desires. Many people incorrectly view motivation as a personal trait—that is, some have it and others do not. Motivation is the result of the interaction of the individual and the situation. Our Definition of Motivation is that it is “the processes that account for an individual’s intensity, direction, and persistence of effort toward attaining a goal.” We will narrow the focus to organizational goals in order to reflect our singular interest in work-related behavior.

3 components of motivation

Describe the three key elements of motivation
The three key elements of our definition are intensity, direction, and persistence: Intensity is concerned with how hard a person tries. Direction is a goal which forces the employees to perform an act to achieve the targets. Persistence is a measure of how long a person can maintain his/her effort. The three key elements of our definition of motivation are intensity, direction, and persistence. Intensity is concerned with how hard a person tries to do anything. This is the element most of us focus on when we talk about motivation. Direction is a goal which forces the employees to perform an act to achieve the targets. It can be positive or negative. Persistence is a measure of how long a person can maintain his or her effort. Motivated individuals stay with a task long enough to achieve their goal.

Maslow’s Hierarchy of Needs theory
Abraham Maslow’s hierarchy of needs is the most well known theory of motivation. He hypothesized that within every human being there exists a hierarchy of five needs. These begin with Physiological needs that include hunger, thirst, shelter, sex, and other bodily needs. The second level is Safety needs that include security and protection from physical and emotional harm. The next level is Social needs and it includes affection, belongingness, acceptance, and friendship. Reaching a higher level we find Esteem needs that includes internal esteem factors such as self-respect, autonomy, and achievement; and external esteem factors such as status, recognition, and attention. At the top of the hierarchy is Self-actualization needs. This is the drive to become what one is capable of becoming; includes growth, achieving one’s potential, and self-fulfillment. As a need becomes substantially satisfied, the next need becomes dominant. No need is ever fully gratified; a substantially satisfied need no longer motivates. .

Maslow’s Hierarchy of Needs theory

Identify early theories of motivation and evaluate their applicability today
Maslow’s need theory has received wide recognition, particularly among practicing managers. Research does not generally validate the theory. Some researchers have attempted to revive components of the need hierarchy concept, using principles from evolutionary psychology. Maslow’s need theory has received wide recognition, particularly among practicing managers. Research does not generally validate the theory. Maslow provided no empirical substantiation, and several studies that sought to validate the theory found no support for it. Some researchers have attempted to revive components of the need hierarchy concept, using principles from evolutionary psychology.Time will tell whether these revisions to Maslow’s hierarchy will be useful to practicing managers.

Douglas McGregor’s Theory X and Theory Y
Douglas McGregor’s Theory X and Theory Yconcluded that a manager’s view of the nature of human beings is based on a certain grouping of assumptions and he or she tends to mold his or her behavior toward employees according to these assumptions. Theory X assumptions are basically negative. Employees inherently dislike work and, whenever possible, will attempt to avoid it.Since employees dislike work, they must be coerced, controlled, or threatened with punishment. Employees will avoid responsibilities and seek formal direction whenever possible.Most workers place security above all other factors and will display little ambition. Theory Y assumptions are basically positive. Employees can view work as being as natural as rest or play. People will exercise self-direction and self-control if they are committed to the objectives.

Dougla McGregor’s XY Theory Implications
What are the implications for managers? This is best explained by using Maslow’s frameworkTheory X assumes that lower-order needs dominate individuals. Theory Y assumes that higher-order needs dominate individuals. McGregor himself held to the belief that Theory Y assumptions were more valid than Theory X. There is no evidence to confirm that either set of assumptions is valid. No evidence to confirm that either theory X or theory Y of is valid.

Herzberg’s two factor theory

Herberg’s Two factor Theory
Motivational/Satisfaction factors Achievement Recognition Work itself Responsibility Advancement Hygiene/dissatisfaction Factors 1. Company policy 2. Administrative policies 3. Supervision 4. Salary 5. Interpersonal relations 6. Working conditions The Two-Factor Theory is sometimes also called motivation-hygiene theory. Proposed by psychologist Frederick Herzberg when he investigated the question, “What do people want from their jobs?” He asked people to describe, in detail, situations in which they felt exceptionally good or bad about their jobs. These responses were then tabulated and categorized. From the categorized responses, Herzberg concluded that Intrinsic factors, such as advancement, recognition, responsibility, and achievement seem to be related to job satisfaction. Dissatisfied respondents tended to cite extrinsic factors, such as supervision, pay, company policies, and working conditions. The opposite of satisfaction is not dissatisfaction. Removing dissatisfying characteristics from a job does not necessarily make the job satisfying. Job satisfaction factors are separate and distinct from job dissatisfaction factors.

Implications of Herzberg’s theory:
Recent review of Herzberg’s researchhas resulted in many criticisms of the theory. For example, The procedure that Herzberg used is limited by its methodology. The reliability of Herzberg’s methodology is questioned. No overall measure of satisfaction was utilized. Herzberg assumed a relationship between satisfaction and productivity, but the research methodology he used looked only at satisfaction, not at productivity. Regardless of criticisms, Herzberg’s theory has been widely read, and few managers are unfamiliar with his recommendations. The popularity of vertically expanding jobs to allow workers greater responsibility can probably be attributed to Herzberg’s findings.

McClelland’s Theory of Needs
According to McClelland, regardless of the culture or gender people are driven by 3 motives/needs The next traditional theory is McClelland’s Theory of Needs.This theory focuses on three needs: achievement, power, and affiliation. Let’s look at each one for a minute. The first of this theory’s variables is achievement need, which is abbreviated nAch, and is the drive to excel, to achieve in relation to a set of standards, to strive to succeed.High achievers perform best when they perceive their probability of success as They like to set goals that require stretching themselves a little.

McClelland’s Theory of Needs

Implications of McClelland’s theory

Evaluation of McClelland’s theory
McClelland’s theory has had the best support. It has less practical effect than the others. Because McClelland argued that the three needs are subconscious—we may rank high on them but not know it—measuring them is not easy. However, the process is time consuming and expensive, and few organizations have been willing to invest in measuring McClelland’s concept. Among the early theories of motivation McClelland’s has had the best research support. Unfortunately, it has less practical effect than the others. McClelland argued that the three needs are subconscious. We may rank high on them but not know it. Because of this measuring them is not easy. In the most common approach, a trained expert presents pictures to individuals, asks them to tell a story about each, and then scores their responses in terms of the three needs. However, the process is time consuming and expensive, and few organizations have been willing to invest in measuring McClelland’s concept.

Power and Politics Chapter 13: Power and Politics

Define power and contrast leadership and power
Power refers to a capacity that A has to influence the behavior of B, so that B acts in accordance with A’s wishes. Power may exist but not be used. Probably the most important aspect of power is that it is a function of dependency. A person can have power over you only if he or she controls something you desire. Power refers to a capacity that A has to influence the behavior of B, so that B acts in accordance with A’s wishes. Power may exist but not be used. It is, therefore, a capacity or potential. Probably the most important aspect of power is that it is a function of dependency. The greater B’s dependence on A, the greater is A’s power in the relationship. Dependence, in turn, is based on alternatives that B perceives and the importance that B places on the alternative(s) that A controls. A person can have power over you only if he or she controls something you desire. 1

Define power and contrast leadership and power
Contrasting Leadership and Power Why leaders hold power? Leaders use power as a means of attaining group goals. Leaders achieve goals, and power is a means of facilitating their achievement. Goal compatibility Power does not require goal compatibility, merely dependence. Leadership, on the other hand, requires some congruence between the goals of the leader and those being led. The direction of influence Leadership focuses on the downward influence on followers. It minimizes the importance of lateral and upward influence patterns. Power does not. Focus of research Leadership research focus on the style of leadership and the individual while power research focuses on groups also as power is not related exclusive to a person and extends considerably to the groups Let’s Contrast Leadership and Power. Leaders use power as a means of attaining group goals. Leaders achieve goals, and power is a means of facilitating their achievement. Differences between Leadership and Power include Goal compatibility. Power does not require goal compatibility, merely dependence. Leadership, on the other hand, requires some congruence between the goals of the leader and those being led. The direction of influence can be said that Leadership focuses on the downward influence on followers. It minimizes the importance of lateral and upward influence patterns. Power does not. Leadership research, for the most part, emphasizes style. It seeks answers to questions such as these: How supportive should a leader be? How much decision making should be shared with followers? In contrast, the research on power focuses on tactics for gaining compliance. It goes beyond the individual as the exerciser of power, because groups as well as individuals can use power to control other individuals or groups. 1

Contrast the five bases of power
Formal Power Coercive Power The coercive power base is being dependent on fear of negative results. Reward Power People comply because doing so produces positive benefits; therefore, one who can distribute rewards that others view as valuable will have power over those others Legitimate Power It represents the formal authority to control and use organizational resources based on structural position in the organization Legitimate power is broader than the power to coerce and reward. It includes acceptance of the authority of a position by members of an organization. Five bases of power have been defined by French and Raven. They are coercive power, reward power, legitimate power, expert power and referent power. The coercive power base is being dependent on fear of negative results. It rests on the application, or the threat of application, of physical sanctions such as the infliction of pain, the generation of frustration through restriction of movement, or the controlling by force of basic physiological or safety needs. At the organizational level, A has coercive power over B if A can dismiss, suspend, or demote B, assuming that B values his or her job. Similarly, if A can assign B work activities that B finds unpleasant or treat B in a manner that B finds embarrassing, A possesses coercive power over B. The opposite of coercive power is reward power. People comply because doing so produces positive benefits; therefore, one who can distribute rewards that others view as valuable will have power over those others. These rewards can be either financial—such as controlling pay rates, raises, and bonuses—or nonfinancial, including recognition, promotions, interesting work assignments, friendly colleagues, and preferred work shifts or sales territories In formal groups and organizations, probably the most common access to one or more of the power bases is through legitimate power . It represents the formal authority to control and use organizational resources based on structural position in the organization. Legitimate power is broader than the power to coerce and reward. It includes acceptance of the authority of a position by members of an organization. 1

Personal (informal) Power Expert Power Expert power is "influence wielded as a result of expertise, special skill, or knowledge.” As jobs become more specialized, we become increasingly dependent on experts to achieve goals. Referent Power Referent Power’s base is identification with a person who has desirable resources or personal traits. If I admire and identify with you, you can exercise power over me because I want to please you. In addition to these three categories of formal power, a second set called personal power is also present. Expert power is "influence wielded as a result of expertise, special skill, or knowledge.” As jobs become more specialized, we become increasingly dependent on experts to achieve goals. Referent Power’s base is identification with a person who has desirable resources or personal traits. If I admire and identify with you, you can exercise power over me because I want to please you. Referent power develops out of admiration of another and a desire to be like that person; it is a lot like charisma. Referent power explains why celebrities are paid millions of dollars to endorse products in commercials. Some people who are not in formal leadership positions nonetheless have referent power and exert influence over others because of their charismatic dynamism, likability, and emotional effects on us.

Which Bases of Power Are Most Effective? Personal sources are most effective. Both expert and referent power are positively related to employees’ satisfaction with supervision, their organizational commitment, and their performance, whereas reward and legitimate power seem to be unrelated to these outcomes. Coercive power usually backfires. Which Bases of Power Are Most Effective? Personal sources are most effective. Both expert and referent power are positively related to employees’ satisfaction with supervision, their organizational commitment, and their performance, whereas reward and legitimate power seem to be unrelated to these outcomes. Coercive power usually backfires. 1

Explain the role of dependence in power relationships
The General Dependency Postulate the greater B's dependency on A, the greater the power A has over B. Dependency is inversely proportional to the alternative sources of supply. Dependency is increased when the resource controlled is important, scarce, and non-substitutable. The General Dependency Postulate says the greater B’s dependency on A, the greater the power A has over B. When you possess anything that others require but that you alone control, you make them dependent upon you and, therefore, you gain power over them. Dependency, then, is inversely proportional to the alternative sources of supply. This is why most organizations develop multiple suppliers rather than using just one. It also explains why so many of us aspire to financial independence. What Creates Dependency? To create dependency, the thing(s) you control must be perceived as being important. Organizations actively seek to avoid uncertainty. Therefore, those individuals or groups who can absorb an organization’s uncertainty will be perceived as controlling an important resource. A resource needs to be perceived as scarce to create dependency. The scarcity-dependency relationship can further be seen in the power of occupational categories. Individuals in occupations in which the supply of personnel is low relative to demand can negotiate compensation and benefit packages, which are far more attractive than can those in occupations where there is an abundance of candidates. Nonsubstitutability means the more that a resource has no viable substitutes, the more power that control over that resource provides. 1

Identify nine power or influence tactics and their contingencies
Legitimacy Because you’re the boss Rational Persuasion See the logic Inspirational Appeals Consultation Let’s do it together Exchange You do this, you’ll get this Personal Appeals Manode kada (friendship and loyalty) Ingratiaing Kaka pattu Pressure coercive Coalitions Inkoditho adiginchu Research has identified nine distinct influence tactics. First is legitimacy. Relying on your authority position or saying a request accords with organizational policies or rules. Second is rational persuasion. Presenting logical arguments and factual evidence to demonstrate a request is reasonable. Third is inspirational appeals. Developing emotional commitment by appealing to a target’s values, needs, hopes, and aspirations. Fourth is consultation. Increasing the target’s support by involving him or her in deciding how you will accomplish your plan. Fifth is exchange. Rewarding the target with benefits or favors in exchange for following a request. Sixth is personal appeals. Asking for compliance based on friendship or loyalty. Seventh is ingratiation. Using flattery, praise, or friendly behavior prior to making a request. Eighth is pressure. Using warnings, repeated demands, and threats. And nine is coalitions. Enlisting the aid or support of others to persuade the target to agree.

Some tactics are more effective than others.
Rational persuasion, inspirational appeals, and consultation are most effective when the audience is highly interested in the outcomes. Pressure tends to backfire. Both ingratiation and legitimacy can lessen the negative reactions from appearing to “dictate” outcomes. Some tactics are more effective than others. Rational persuasion, inspirational appeals, and consultation tend to be the most effective, especially when the audience is highly interested in the outcomes of a decision process. Pressure tends to backfire and is typically the least effective of the nine tactics. You can also increase your chance of success by using more than one type of tactic at the same time or sequentially, as long as your choices are compatible. Using both ingratiation and legitimacy can lessen the negative reactions from appearing to “dictate” outcomes, but only when the audience does not really care about the outcomes of a decision process or the policy is routine. 1

Identify nine power or influence tactics and their contingencies
As Exhibit 13-1 shows, rational persuasion is the only tactic effective across organizational levels. Inspirational appeals work best as a downward influencing tactic with subordinates. When pressure works, it’s generally downward only. Personal appeals and coalitions are most effective as lateral influence. Other factors that affect the effectiveness of influence include the sequencing of tactics, a person’s skill in using the tactic, and the organizational culture. You’re more likely to be effective if you begin with “softer” tactics that rely on personal power, such as personal and inspirational appeals, rational persuasion, and consultation. If these fail, you can move to “harder” tactics, such as exchange, coalitions, and pressure, which emphasize formal power and incur greater costs and risks. Interestingly, a single soft tactic is more effective than a single hard tactic, and combining two soft tactics or a soft tactic and rational persuasion is more effective than any single tactic or combination of hard tactics. The effectiveness of tactics depends on the audience. People especially likely to comply with soft power tactics tend to be more reflective, are intrinsically motivated, have high self-esteem, and have greater desire for control. People especially likely to comply with hard power tactics are more action oriented and extrinsically motivated and are more focused on getting along with others than with getting their own way. 1

Identify the causes and consequences of political behavior
Definition of politics Those activities that are not required as part of one’s formal role in the organization, but that influence the distribution of advantages within the organization. It is outside one’s specified job requirements. It encompasses efforts to influence decision-making goals, criteria, or processes. It includes such behaviors as withholding information, whistle blowing, spreading rumors, leaking confidential information. Politics is defined as those activities that are not required as part of one’s formal role in the organization, but that influence, or attempt to influence, the distribution of advantages and disadvantages within the organization. This definition encompasses key elements. Political behavior is outside one’s specified job requirements. It encompasses efforts to influence the goals, criteria, or processes used for decision-making. It includes such varied political behaviors as withholding key information from decision makers, whistle blowing, spreading rumors, leaking confidential information. 1

Most managerial decisions take place in the large and ambiguous middle ground of organizational life. (Exhibit 13-2)Because most decisions have to be made in a climate of ambiguity, people within organizations will use whatever influence they can to taint the facts to support their goals and interests. These are activities we call politicking. It is possible for an organization to be politics free, if all members of that organization hold the same goals and interests, however, that is not the organization most people work in. 1

Factors Contributing to Political Behavior as shown in Exhibit 13-3, include individual factors. Researchers have identified certain personality traits, needs, and other factors that are likely to be related to political behavior. Employees who are high self-monitors, possess an internal locus of control, and have a high need for power are more likely to engage in political behavior. The high self-monitor is more sensitive to social cues and is more likely to be skilled in political behavior than the low self-monitor. Individuals with an internal locus of control are more prone to take a proactive stance and attempt to manipulate situations in their favor. The Machiavellian personality is comfortable using politics as a means to further his/her self-interest. An individual’s investment in the organization, perceived alternatives, and expectations of success will influence the tendency to pursue illegitimate means of political action. The more that a person has invested and the more a person has to lose, the less likely he/she is to use illegitimate means. The more a person expects increased future benefits from the organization, the more that person has to lose if forced out and the less likely he or she is to use illegitimate means. The more alternative job opportunities an individual has—due to a favorable job market or the possession of scarce skills or knowledge, a prominent reputation, or influential contacts outside the organization—the more likely that individual is to risk illegitimate political actions. Finally, an individual with low expectations of success from illegitimate means is unlikely to use them. High expectations from such measures are most likely to be the province of both experienced and powerful individuals with polished political skills and inexperienced and naïve employees who misjudge their chances. 1

The organizational factors that influence politics are many. Political activity is probably more a function of the organization’s characteristics than of individual difference variables. When an organization’s resources are declining, when the existing pattern of resources is changing, and when there is opportunity for promotions, politics is more likely to surface. Cultures characterized by low trust, role ambiguity, unclear performance evaluation systems, zero-sum reward allocation practices, democratic decision-making, high pressures for performance, and self-serving senior managers will create breeding grounds for politicking. When organizations downsize to improve efficiency, people may engage in political actions to safeguard what they have. Promotion decisions have consistently been found to be one of the most political in organizations. The less trust there is within the organization, the higher the level of political behavior and the more likely it will be illegitimate. Role ambiguity means that the prescribed behaviors of the employee are not clear. The greater the role ambiguity, the more one can engage in political activity with little chance of it being visible. Subjective performance criteria create ambiguity. Single outcome measures encourage doing whatever is necessary to “look good.” The more time that elapses between an action and its appraisal, the more unlikely that the employee will be held accountable for his/her political behaviors. The zero-sum approach treats the reward “pie” as fixed so that any gain one person or group achieves has to come at the expense of another person or group. If I win, you must lose! This encourages making others look bad and increasing the visibility of what you do. Making organizations less autocratic by asking managers to behave more democratically is not necessarily embraced by all individual managers. Sharing their power with others runs directly against some managers’ desires. The result is that managers, especially those who began their careers in the 1950s and 1960s, may use the required committees, conferences, and group meetings in a superficial way as arenas for maneuvering and manipulating. The more pressure that employees feel to perform well, the more likely they are to engage in politicking. If a person perceives that his or her entire career is riding on the next “whatever,” there is motivation to do whatever is necessary to make sure the outcome is favorable. When employees see top management successfully engaging in political behavior, a climate is created that supports politicking. 1

For most people, who have modest political skills or are unwilling to play the politics game, outcomes tend to be predominantly negative. Exhibit 13-4 summarizes the extensive research on the relationship between organizational politics and individual outcomes. There is very strong evidence indicating that perceptions of organizational politics are negatively related to job satisfaction. The perception of politics leads to anxiety or stress. When it gets to be too much to handle, employees quit. When employees of two agencies in a recent study in Nigeria viewed their work environments as political, they reported higher levels of job distress and were less likely to help their co-workers. Thus, although developing countries such as Nigeria are perhaps more ambiguous and more political environments in which to work, the negative consequences of politics appear to be the same as in the United States. 1

The politics–performance relationship appears to be moderated by an individual’s understanding of the “hows” and “whys” of organizational politics. When employees see politics as a threat, they often respond with defensive behaviors—reactive and protective behaviors to avoid action, blame, or change. Exhibit 13-5 provides some examples of these behaviors. Defensive behaviors are often associated with negative feelings toward the job and work environment. In the short run, employees may find that defensiveness protects their self-interest, but in the long run it wears them down. People who consistently rely on defensiveness find that, eventually, it is the only way they know how to behave. At that point, they lose the trust and support of their peers, bosses, employees, and clients. 1

If you want to get things done in a group or an organization, it helps to have power. Here are several suggestions for how to deal with power in your own work life: As a manager who wants to maximize your power, you will want to increase others’ dependence on you. If you want to get things done in a group or an organization, it helps to have power. Here are several suggestions for how to deal with power in your own work life. As a manager who wants to maximize your power, you will want to increase others’ dependence on you. You can, for instance, increase your power in relation to your boss by developing knowledge or a skill she needs and for which she perceives no ready substitute. But you will not be alone in attempting to build your power bases. Others, particularly employees and peers, will be seeking to increase your dependence on them, while you are trying to minimize it and increase their dependence on you. The result is a continual battle. 1

Few employees relish being powerless in their job and organization. Try to avoid putting others in a position where they feel they have no power. People respond differently to the various power bases. Few employees relish being powerless in their job and organization. Try to avoid putting others in a position where they feel they have no power. People respond differently to the various power bases. Expert and referent power are derived from an individual’s personal qualities. In contrast, coercion, reward, and legitimate power are essentially organizationally derived. Competence especially appears to offer wide appeal, and its use as a power base results in high performance by group members. The message for managers seems to be “Develop and use your expert power base!” 1

An effective manager accepts the political nature of organizations. By assessing behavior in a political framework, you can better predict the actions of others and use that information to formulate political strategies that will gain advantages for you and your work unit. An effective manager accepts the political nature of organizations. By assessing behavior in a political framework, you can better predict the actions of others and use that information to formulate political strategies that will gain advantages for you and your work unit. 1

Organizational change and development; work stress and stress management; learning Organization;
Chapter 18: Organizational Change and Stress Management

Identify forces that act as stimulants to change and contrast planned and unplanned change. Describe the sources of resistance to change. Compare the four main approaches to managing organizational change. Demonstrate two ways of creating a culture for change. Define stress and identify its potential sources. Identify the consequences of stress. Contrast the individual and organizational approaches to managing stress. We begin this chapter with a definition of the nine learning objectives defined for the chapter’s contents. We will discuss each of these in some detail.

Identify forces that act as stimulants to change and contrast planned and unplanned change
Organizations face a dynamic and changing environment. This requires adaptation. Exhibit 18–1 summarizes six specific forces that are acting as stimulants for change. First is the nature of the workforce. Almost every organization must adjust to a multicultural environment, demographic changes, immigration, and outsourcing. Second, technology is changing jobs and organizations. It is not hard to imagine the very idea of an office becoming an antiquated concept in the near future. Third are economic shocks. Fourth is that competition is changing. Competitors are as likely to come from across the ocean as from across town. Successful organizations will be fast on their feet, capable of developing new products rapidly and getting them to market quickly. In other words, they’ll be flexible and will require an equally flexible and responsive workforce. Increasingly, in the United States and Europe, the government regulates business practices, including executive pay. Fifth is the fact that social trends don’t remain static either. Consumers who are otherwise strangers now meet and share product information in chat rooms and blogs. Companies must continually adjust product and marketing strategies to be sensitive to changing social trends, as Liz Claiborne did when it sold off fashion brands (such as Ellen Tracy), deemphasized large vendors such as Macy’s, and streamlined operations and cut staff. Consumers, employees, and organizational leaders are more sensitive to environmental concerns. “Green” practices are quickly becoming expected rather than optional. And, sixth is World politics. A global context for OB is required. No one could have imagined how world politics would change in recent years. We’ve seen a major set of financial crises that have rocked global markets, a dramatic rise in the power and influence of China, and dramatic shakeups in government across the Arab world. Throughout the industrialized world, businesses—particularly in the banking and financial sectors—have come under new scrutiny. 1

Planned vs. Unplanned Change
Planned change is intentional and is aimed at improving the ability of the organization to adapt to changes in its environment. Unplanned change is that unpredictable change that happens as a reaction to the changes in the environment or by some random happennings with in the organization Ex: 1) Creation of iPod, iPhone, and iPad was a planned change at Apple 2) Tata Nano plant shifting from WB to GJ is an unplanned change

Describe the sources of resistance to change
There are five individual sources of resistance. See Exhibit 18–2. First is individual sources habits. To cope with life’s complexities, we rely on habits or programmed responses. But when confronted with change, this tendency to respond in our accustomed ways becomes a source of resistance. Second is security. People with a high need for security are likely to resist change because it threatens their feelings of safety. Third are economic factors. Changes in job tasks or established work routines can arouse economic fears if people are concerned that they won’t be able to perform the new tasks or routines to their previous standards, especially when pay is closely tied to productivity. Fourth is the fear of the unknown. Change substitutes ambiguity and uncertainty for the unknown. And fifth s selective information processing. Individuals are guilty of selectively processing information in order to keep their perceptions intact. They hear what they want to hear, and they ignore information that challenges the world they’ve created. There are five major sources of organizational resistance. First is structural inertia. Organizations have built-in mechanisms to produce stability; this structural inertia acts as a counterbalance to sustainability. Second is limited focus of change. Organizations are made up of a number of interdependent subsystems. Changing one affects the others. Third is group inertia. Group norms may act as a constraint. Fourth is the threat to expertise. Changes in organizational patterns may threaten the expertise of specialized groups. Fifth is threat to established power relationships: Redistribution of decision-making authority can threaten long-established power relationships. Threat to established resource allocations: Groups in the organization that control sizable resources often see change as a threat. They tend to be content with the way things are. 1

Describe the sources of resistance to change
Overcome Resistance Education and Communication Participation Building Support and Commitment Develop Positive Relationships Manipulation and Cooptation Selecting People Who Accept Change Coercion Resistance can be reduced on two levels through communicating to help employees see the logic of a change. It fights the effects of misinformation and poor communication: if employees receive the full facts and clear up misunderstandings, resistance should subside. Communication can help “sell” the need for change by packaging it properly. It is difficult for individuals to resist a change decision in which they participated. Prior to making a change, those opposed can be brought into the decision process, assuming they have the expertise to make a meaningful contribution. The negatives—potential for a poor solution and great time consumption. When employees’ fear and anxiety are high, counseling and therapy, new-skills training, or a short paid leave of absence may facilitate adjustment. When managers or employees have low emotional commitment to change, they favor the status quo and resist it. So firing up employees can also help them emotionally commit to the change rather than embrace the status quo. People are more willing to accept changes if they trust the managers implementing them. One study surveyed 235 employees from a large housing corporation in the Netherlands that was experiencing a merger. Those who had a more positive relationship with their supervisors, and who felt that the work environment supported development, were much more positive about the change process. Implementing Changes Fairly One way organizations can minimize negative impact is to make sure change is implemented fairly. As we saw in Chapter 7, procedural fairness is especially important when employees perceive an outcome as negative, so it’s crucial that employees see the reason for the change and perceive its implementation as consistent and fair. Manipulation refers to covert influence attempts, Twisting and distorting facts to make them appear more attractive, withholding undesirable information, and Creating false rumors to get employees to accept a change. Cooptation is “a form of both manipulation and participation.” It seeks to “buy off” the leaders of a resistance group by giving them a key role in the change decision. Both manipulation and cooptation are relatively inexpensive and easy ways to gain support. The tactics can backfire if the targets become aware that they are being tricked or used. Research suggests the ability to easily accept and adapt to change is related to personality—some people simply have more positive attitudes about change than others. Such individuals are open to experience, take a positive attitude toward change, are willing to take risks, and are flexible in their behavior. One study of managers in the United States, Europe, and Asia found those with a positive self-concept and high-risk tolerance coped better with organizational change. A study of 258 police officers found those higher in growth-needs strength, internal locus of control, and internal work motivation had more positive attitudes about organizational change efforts. Individuals higher in general mental ability are also better able to learn and adapt to changes in the workplace. In sum, an impressive body of evidence shows organizations can facilitate change by selecting people predisposed to accept it. Besides selecting individuals who are willing to accept changes, it is also possible to select teams that are more adaptable. Studies have shown that teams that are strongly motivated by learning about and mastering tasks are better able to adapt to changing environments. This research suggests that it may be necessary to consider not just individual motivation, but also group motivation when trying to implement changes. This is “the application of direct threats or force upon the resisters.” Examples of coercion are threats of transfer, loss of promotions, negative performance evaluations, and a poor letter of recommendation. 1

Compare the four main approaches to managing organizational change
Lewin’s Three-Step Model (Exhibit 18-3) Kotter’s Eight-Step Plan for Implementing Change (Exhibit 18-5) Action Research Organizational Development The four main approaches to managing change are Lewin’s Three-Step Model (Exhibit 18-3), Kotter’s Eight-Step Plan for Implementing Change (Exhibit 18-5), Action Research, and Organizational Development. Let’s look at each of them. 1

In Lewin’s Three-Step Model (Exhibit 18-3) he argued that successful change in organizations should follow three steps. One is Unfreezing the status quo. Two is Movement to a new state. And, three is refreezing the new change to make it permanent. The status quo can be considered to be an equilibrium state. 1

Haven’t studied this slide Kotter’s Eight-Step Plan for Implementing change is shown in Exhibit John Kotter of the Harvard Business School built on Lewin’s three-step model to create a more detailed approach for implementing change. Kotter began by listing common mistakes managers make when trying to initiate change. They may fail to create a sense of urgency about the need for change, to create a coalition for managing the change process, to have a vision for change and effectively communicate it, to remove obstacles that could impede the vision’s achievement, to provide short-term and achievable goals, and to anchor the changes into the organization’s culture. They may also declare victory too soon. Kotter then established eight sequential steps to overcome these problems. They’re listed in Exhibit Notice how Kotter’s first four steps essentially extrapolate Lewin’s “unfreezing” stage. Steps 5, 6 and 7 represent “movement,” and the final step works on “refreezing.” So Kotter’s contribution lies in providing managers and change agents with a more detailed guide for successfully implementing change. 1

Action research is “a change process based on the systematic collection of data and then selection of a change action based on what the analyzed data indicate.” The process consists of five steps: diagnosis, analysis, feedback, action, and evaluation. Action research provides at least two specific benefits for an organization: problem focused and resistance to change is reduced. Action research is “a change process based on the systematic collection of data and then selection of a change action based on what the analyzed data indicate.” The process consists of five steps: diagnosis, analysis, feedback, action, and evaluation. These steps closely parallel the scientific method. Diagnosis begins by gathering information about problems, concerns, and needed changes from members of the organization. Analysis of information is synthesized into primary concerns, problem areas, and possible actions. Action research includes extensive involvement of the people who will be involved in the change program. Feedback requires sharing with employees what has been found from steps one and two and the development of a plan for the change. Action is the step where the change agent and employees set into motion the specific actions to correct the problems that were identified. Evaluation is the final step to assess the action plan’s effectiveness. Using the initial data gathered as a benchmark, any subsequent changes can be compared and evaluated. Action research provides at least two specific benefits for an organization. First, it is problem-focused. The change agent objectively looks for problems and the type of problem determines the type of change of action. Second, resistance to change is reduced. Once employees have actively participated in the feedback stage, the change process typically takes on a momentum of its own. 1

Organizational Development
Organizational development (OD) is a collection of change methods that try to improve organizational effectiveness and employee well-being. The OD methods value human and organizational growth, collaborative and participative processes, and a spirit of inquiry. Organizational development (OD) is a collection of change methods that try to improve organizational effectiveness and employee well-being. The OD methods value human and organizational growth, collaborative and participative processes, and a spirit of inquiry. Contemporary OD borrows heavily from postmodern philosophy in placing heavy emphasis on the subjective ways in which people see their environment. The focus is on how individuals make sense of their work environment. The change agent may take the lead in OD, but there is a strong emphasis on collaboration. 1

Organizational Development
The underlying values in most OD efforts: Respect for people Trust and support Power equalization Confrontation/Spirit of inquiry Participation The underlying values in most OD efforts can be identified as Respect for people, Trust and support, Power equalization, Confrontation, and Participation. 1

Learning Organization
A learning organization is a company that facilitates the learning of its members and continuously transforms itself. All organizations learn, whether they consciously choose to or not; it is a fundamental requirement for their sustained existence. Most organizations engage in single-loop learning. When errors are detected, the correction process relies on past routines and present policies. Learning organizations use double-loop learning. When an error is detected, it’s corrected in ways that involve the modification of the organization’s objectives, policies, and standard routines. Like second-order change, double-loop learning challenges deep- rooted assumptions and norms within an organization. It provides opportunities for radically different solutions to problems and dramatic jumps in improvement. A learning organization is an organization that has developed the continuous capacity to adapt and change. All organizations learn, whether they consciously choose to or not; it is a fundamental requirement for their sustained existence. Most organizations engage in single-loop learning. When errors are detected, the correction process relies on past routines and present policies. Learning organizations use double-loop learning. When an error is detected, it’s corrected in ways that involve the modification of the organization’s objectives, policies, and standard routines. Like second-order change, double-loop learning challenges deep-rooted assumptions and norms within an organization. It provides opportunities for radically different solutions to problems and dramatic jumps in improvement. 1

Characteristics of Learning Organization
Systems thinking The idea of organization as a body of interdependent objected bounded in space and time. Considering the holistic view of the systems. Team learning The accumulation of individual learning constitutes team learning. The benefit of team or shared learning is that staff grow more quickly and the problem solving capacity of the organization is improved through better access to knowledge and expertise Personal mastery The commitment by an individual to the process of learning is known as personal mastery. There is a competitive advantage for an organization whose workforce can learn more quickly than the workforce of other organizations Mental Models Assumptions and generalizations held by individuals and organizations are called mental models. Personal mental models describe what people can or cannot detect. Due to selective observation, mental models might limit peoples’ observations. To become a learning organization, these models must be identified and challenged. Shared Vision The development of a shared vision is important in motivating the staff to learn, as it creates a common identity that provides focus and energy for learning

Learning Organization
Exhibit 18-6 summarizes the five basic characteristics of a learning organization. It’s one in which people put aside their old ways of thinking, learn to be open with each other, understand how their organization really works, form a plan or vision everyone can agree on, and work together to achieve that vision. Proponents of the learning organization envision it as a remedy for three fundamental problems of traditional organizations: fragmentation, competition, and reactiveness. First, fragmentation based on specialization creates “walls” and “chimneys” that separate different functions into independent and often warring fiefdoms. Second, an overemphasis on competition often undermines collaboration. Managers compete to show who is right, who knows more, or who is more persuasive. Divisions compete when they ought to cooperate and share knowledge. Team leaders compete to show who the best manager is. And third, reactiveness misdirects management’s attention to problem solving rather than creation. The problem solver tries to make something go away, while a creator tries to bring something new into being. An emphasis on reactiveness pushes out innovation and continuous improvement and, in its place, encourages people to run around “putting out fires.”

Define Stress An unpleasant psychological process that occurs in response to environmental pressures. Can be classified into two types Challenge Stressors stressors associated with workload, pressure to complete tasks, and time urgency Hindrance Stressors hindrance stressors—or stressors that keep you from reaching your goals (for example, red tape, office politics, confusion over job responsibilities) What Is Stress? Stress is a dynamic condition in which an individual is confronted with an opportunity, constraint, or demand related to what he/she desires and for which the outcome is perceived to be both uncertain and important. Stress is not necessarily bad in and of itself. Individuals often use stress positively to rise to the occasion and perform at or near their maximum. Recently, researchers have argued that challenge stressors—or stressors associated with workload, pressure to complete tasks, and time urgency—operate quite differently from hindrance stressors—or stressors that keep you from reaching your goals (for example, red tape, office politics, confusion over job responsibilities). Although research is just starting to accumulate, early evidence suggests challenge stressors produce less strain than hindrance stressors. A meta-analysis of responses from more than 35,000 individuals showed role ambiguity, role conflict, role overload, job insecurity, environmental uncertainty, and situational constraints were all consistently negatively related to job performance. There is also evidence that challenge stress improves job performance in a supportive work environment, whereas hindrance stress reduces job performance in all work environments. Researchers have sought to clarify the conditions under which each type of stress exists. It appears that employees who have a stronger affective commitment to their organization can transfer psychological stress into greater focus and higher sales performance, whereas employees with low levels of commitment perform worse under stress. And when challenge stress increases, those with high levels of organizational support have higher role-based performance, but those with low levels of organizational support do not.

Define stress and identify its potential sources
Exhibit 18-7 shows work is, for most people, the most important source of stress in life. 1

Define stress and identify its potential sources
What are the potential sources of stress? As the model in Exhibit 18-8 shows, there are three categories of potential stressors: environmental, organizational, and personal. Environmental Factors are first. Environmental uncertainty influences stress levels among employees in an organization. Political uncertainties can be stress inducing. Technological uncertainty can cause stress because new innovations can make an employee’s skills and experience obsolete in a very short period of time. Next are Organizational Factors. Pressures to avoid errors or complete tasks in a limited time period, work overload, a demanding and insensitive boss, and unpleasant coworkers are a few examples. Task demands are factors related to a person’s job. They include the design of the individual’s job (autonomy, task variety, degree of automation), working conditions, and the physical work layout. Role demands relate to pressures that are a function of the role an individual plays in an organization. Role conflicts create expectations that may be hard to reconcile or satisfy. Role overload is experienced when the employee is expected to do more than time permits. Role ambiguity is created when role expectations are not clearly understood. Interpersonal demands are pressures created by other employees. Lack of social support from colleagues and poor interpersonal relationships can cause stress, especially among employees with a high social need. A rapidly growing body of research has also shown that negative co-worker and supervisor behaviors, including fights, bullying, incivility, racial harassment, and sexual harassment, are especially strongly related to stress at work. Next are Personal Factors These are factors in the employee’s personal life. Primarily, these factors are family issues, personal economic problems, and inherent personality characteristics. National surveys consistently show that people hold family and personal relationships dear. Economic problems created by individuals overextending their financial resources Studies in three diverse organizations found that participants who reported stress symptoms before beginning a job accounted for most of the variance in stress symptoms reported 9 months later. The researchers concluded that some people may have an inherent tendency to accentuate negative aspects of the world. If this is true, then a significant individual factor that influences stress is a person’s basic disposition. That is, stress symptoms expressed on the job may actually originate in the person’s personality. Five individual difference variables moderate the relationship between potential stressors and experienced stress: perception, job experience, social support, locus of control, and personality. First, perception moderates the relationship between a potential stress condition and an employee’s reaction to it. Stress potential doesn’t lie in objective conditions; it lies in an employee’s interpretation of those conditions. Next is job experience. The evidence indicates that experience on the job tends to be negatively related to work stress. First is the idea of selective withdrawal. Voluntary turnover is more probable among people who experience more stress. Second, people eventually develop coping mechanisms to deal with stress. Social support follows and is the relationships with coworkers or supervisors can buffer the impact of stress. Social support acts as a palliative, mitigating the negative effects of even high-strain jobs. Next is personality traits. Perhaps the most widely studied personality trait in stress is neuroticism, discussed in Chapter 5. As you might expect, neurotic individuals are more prone to experience psychological strain. Evidence suggests that neurotic individuals are more prone to believe there are stressors in their work environments, so part of the problem is that they believe their environments are more threatening. They also tend to select less adaptive coping mechanisms, relying on avoidance as a way of dealing with problems rather than attempting to resolve them. Workaholism is another personal characteristic related to stress levels. Workaholics are people obsessed with their work; they put in an enormous number of hours, think about work even when not working, and create additional work responsibilities to satisfy an inner compulsion to work more. In some ways, they might seem like ideal employees. That’s probably why when most people are asked in interviews what their greatest weakness is, they reflexively say, “I just work too hard.” There is a difference between working hard and working compulsively. Workaholics are not necessarily more productive than other employees, despite their extreme efforts. The strain of putting in such a high level of work effort eventually begins to wear on the workaholic, leading to higher levels of work–life conflict and psychological burnout. 1

Contrast the individual and organizational approaches to managing stress
Because low to moderate levels of stress can be functional and lead to higher performance, management may not be concerned when employees experience them. What management may consider to be “a positive stimulus that keeps the adrenaline running” is very likely to be seen as “excessive pressure” by the employee. Because low to moderate levels of stress can be functional and lead to higher performance, management may not be concerned when employees experience them. Employees, however, are likely to perceive even low levels of stress as undesirable. It’s not unlikely, therefore, for employees and management to have different notions of what constitutes an acceptable level of stress on the job. What management may consider to be “a positive stimulus that keeps the adrenaline running” is very likely to be seen as “excessive pressure” by the employee. 1

Managing Stress- Individual Approaches An employee can take personal responsibility for reducing stress levels. Individual strategies that have proven effective include time-management techniques, increased physical exercise, relaxation training, and expanded social support networks. An employee can take personal responsibility for reducing stress levels. Individual strategies that have proven effective include time-management techniques, increased physical exercise, relaxation training, and expanded social support networks. Many people manage their time poorly. The well-organized employee, like the well-organized student, can often accomplish twice as much as the person who is poorly organized. So an understanding and utilization of basic time-management principles can help individuals better cope with tensions created by job demands. A few of the best-known time-management principles are making daily lists of activities to be accomplished, prioritizing activities by importance and urgency, scheduling activities according to the priorities set, knowing your daily cycle and handling the most demanding parts of your job when you are most alert and productive, and avoiding electronic distractions like frequently checking , which can limit attention and reduce efficiency. These time-management skills can help minimize procrastination by focusing efforts on immediate goals and boosting motivation even in the face of tasks that are less desirable. Physicians have recommended noncompetitive physical exercise, such as aerobics, walking, jogging, swimming, and riding a bicycle, as a way to deal with excessive stress levels. These activities increase lung capacity, lower the at-rest heart rate, and provide a mental diversion from work pressures, effectively reducing work-related levels of stress. Individuals can also teach themselves to reduce tension through relaxation techniques such as meditation, hypnosis, and deep breathing. The objective is to reach a state of deep physical relaxation, in which you focus all your energy on release of muscle tension. Deep relaxation for 15 or 20 minutes a day releases strain and provides a pronounced sense of peacefulness, as well as significant changes in heart rate, blood pressure, and other physiological factors. A growing body of research shows that simply taking breaks from work at routine intervals can facilitate psychological recovery and reduce stress significantly and may improve job performance, and these effects are even greater if relaxation techniques are employed. As we have noted, friends, family, or work colleagues can provide an outlet when stress levels become excessive. Expanding your social support network provides someone to hear your problems and offer a more objective perspective on a stressful situation than your own. 1

Managing Stress- Organizational Approaches Several organizational factors that cause stress are controlled by management. Strategies include improved employee selection and job placement, training, realistic goal-setting, redesign of jobs, increased employee involvement, improved organizational communication, employee sabbaticals, and corporate wellness programs. Several organizational factors that cause stress—particularly task and role demands—are controlled by management and thus can be modified or changed. Strategies to consider include improved employee selection and job placement, training, realistic goal-setting, redesign of jobs, increased employee involvement, improved organizational communication, employee sabbaticals, and corporate wellness programs. Certain jobs are more stressful than others but, as we’ve seen, individuals differ in their response to stressful situations. We know individuals with little experience or an external locus of control tend to be more prone to stress. Selection and placement decisions should take these facts into consideration. Obviously, management shouldn’t restrict hiring to only experienced individuals with an internal locus, but such individuals may adapt better to high-stress jobs and perform those jobs more effectively. Similarly, training can increase an individual’s self-efficacy and thus lessen job strain. 1

Goal-setting Goals can reduce stress as well as provide motivation. Employees who are highly committed to their goals and see purpose in their jobs experience less stress. We discussed goal-setting in Chapter 7. Individuals perform better when they have specific and challenging goals and receive feedback on their progress toward these goals. Goals can reduce stress as well as provide motivation. Employees who are highly committed to their goals and see purpose in their jobs experience less stress because they are more likely to perceive stressors as challenges rather than hindrances. Specific goals perceived as attainable clarify performance expectations .In addition, goal feedback reduces uncertainties about actual job performance. The result is less employee frustration, role ambiguity, and stress. 1

Redesigning jobs to give employees more responsibility, more meaningful work, more autonomy, and increased feedback can reduce stress because these factors give employees greater control over work activities and lessen dependence on others. Redesigning jobs to give employees more responsibility, more meaningful work, more autonomy, and increased feedback can reduce stress because these factors give employees greater control over work activities and lessen dependence on others. But as we noted in our discussion of work design, not all employees want enriched jobs. The right redesign for employees with a low need for growth might be less responsibility and increased specialization. If individuals prefer structure and routine, reducing skill variety should also reduce uncertainties and stress levels. 1

Role stress is detrimental to a large extent because employees feel uncertain about goals, expectations, how they’ll be evaluated, and the like. By giving these employees a voice in the decisions management can increase employee control and reduce role stress. Managers should consider increasing employee involvement in decision making. Role stress is detrimental to a large extent because employees feel uncertain about goals, expectations, how they’ll be evaluated, and the like. By giving these employees a voice in the decisions that directly affect their job performance, management can increase employee control and reduce role stress. Thus, managers should consider increasing employee involvement in decision making, because evidence clearly shows that increases in employee empowerment reduce psychological strain. 1

Organizationally supported wellness programs. These typically provide workshops to help people quit smoking, control alcohol use, lose weight, eat better, and develop a regular exercise program; they focus on the employee’s total physical and mental condition. Our final suggestion is organizationally supported wellness programs. These typically provide workshops to help people quit smoking, control alcohol use, lose weight, eat better, and develop a regular exercise program; they focus on the employee’s total physical and mental condition. Some help employees improve their psychological health as well. A meta-analysis of 36 programs designed to reduce stress (including wellness programs) showed that interventions to help employees reframe stressful situations and use active coping strategies appreciably reduced stress levels. Most wellness programs assume employees need to take personal responsibility for their physical and mental health and that the organization is merely a means to that end. 1

Conflict and Negotiation
Chapter 14; Not studying Conflict Management Process – 103 to 105; Not studying distributive and integrative bargaining (L05 – 109 to 114)

Though ‘Negotiation’ is part of the syllabus and a simple enough one at that – no questions are asked on that. So – we can expect a question in near future (2020; 2021…etc.) 1. What are the major negotiation methods? What’s the negotiation process? Give examples on how one should go about it.

Define conflict. Differentiate between the traditional, interactionist, and managed-conflict views of conflict. Outline the conflict process. Define negotiation. Contrast distributive and integrative bargaining. Apply the five steps of the negotiation process. Show how individual differences influence negotiations. Assess the roles and functions of third-party negotiations. We begin this chapter with a definition of the eight learning objectives defined for the chapter’s contents. We will discuss each of these in some detail.

Define conflict A process that begins when one party perceives that another party has negatively affected, or is about to negatively affect, something that the first party cares about. Elements that most definitions contain Perception: The parties to it must perceive conflict. Differing interests: Opposition or incompatibility and some form of interaction. There are several common themes which underlie most definitions of conflict. First, the parties involved must perceive conflict is present. Commonalties in the definitions are opposition or incompatibility and some form of interaction. We define conflict as “a process that begins when one party perceives that another party has negatively affected, or is about to negatively affect, something that the first party cares about.” This describes that point when an interaction “crosses over” to become an inter-party conflict. It encompasses the wide range of conflicts that people experience in organizations. 1

Differentiate between the traditional, interactionist, and resolution focsued -conflict views of conflict In sum, the traditional view was shortsighted in assuming all conflict should be eliminated. The interactionist view that conflict can stimulate active discussion without spilling over into negative, disruptive emotions is incomplete. The managed conflict perspective does recognize that conflict is probably inevitable in most organizations, and it focuses more on productive conflict resolution.

The Traditional View of Conflict
Differentiate between the traditional, interactionist, and resolution focsued -conflict views of conflict The Traditional View of Conflict Conflict was a dysfunctional outcome resulting from poor communication, a lack of openness and trust between people, and the failure of managers to be responsive to the needs and aspirations of their employees. Assumed all was bad and to be avoided. Viewed negatively and discussed with such terms violence, destruction, and irrationality. The Traditional View of Conflict as an early approach to conflict assumed all conflict was bad and to be avoided. It was viewed negatively and discussed with such terms as violence, destruction, and irrationality to reinforce its negative connotation. This traditional view of conflict was consistent with attitudes about group behavior that prevailed in the 1930s and 1940s. Conflict was a dysfunctional outcome resulting from poor communication, a lack of openness and trust between people, and the failure of managers to be responsive to the needs and aspirations of their employees. The view that all conflict is bad certainly offers a simple approach to looking at the behavior of people who create conflict. We need merely direct our attention to the causes of conflict and correct those malfunctions to improve group and organizational performance. This view of conflict fell out of favor for a long time as researchers came to realize that some level of conflict was inevitable. 1

The interactionist view of conflict
The belief that conflict is not only a positive force in a group but also an absolute necessity for a group to perform effectively. A harmonious, peaceful, tranquil, and cooperative group is prone to becoming static, apathetic, and unresponsive to needs for change and innovation. But, not all conflicts are good. Functional, constructive forms of conflict support goals. Conflicts that hinder group performance are dysfunctional or destructive forms of conflict. The interactionist view of conflict encourages conflict on the grounds that a harmonious, peaceful, tranquil, and cooperative group is prone to becoming static, apathetic, and unresponsive to needs for change and innovation. Not all conflicts are good. Functional, constructive forms of conflict support the goals of the group and improve its performance. Conflicts that hinder group performance are dysfunctional or destructive forms of conflict. 1

What differentiates functional from dysfunctional conflict?
Task conflict relates to the content and goals of the work. Relationship conflict focuses on interpersonal relationships. Process conflict relates to how the work gets done. What differentiates functional from dysfunctional conflict? You need to look at the type of conflict. Task conflict relates to the content and goals of the work. Relationship conflict focuses on interpersonal relationships. Studies demonstrate that relationship conflicts are almost always dysfunctional. It appears that the friction and interpersonal hostilities inherent in relationship conflicts increase personality clashes and decrease mutual understanding, which hinders the completion of organizational tasks. Process conflict relates to how the work gets done. Low levels of process conflict and low to moderate levels of task conflict can be functional, but only in very specific cases. For process conflict to be productive, it must be kept low. Intense arguments create uncertainty. 1

What differentiates functional from dysfunctional conflict?
This means task conflicts relate positively to creativity and innovation, but are not related to routine task performance. If the group is engaged in discussion of ideas in a nonconfrontational way, adding conflict will not generate more ideas. Task conflict is related to positive outcomes when members share goals and have high levels of trust. This means task conflicts relate positively to creativity and innovation, but they are not related to routine task performance. Groups performing routine tasks that don’t require creativity won’t benefit from task conflict. If the group is already engaged in active discussion of ideas in a nonconfrontational way, adding conflict will not help generate more ideas. Task conflict is also related to these positive outcomes only when all members share the same goals and have high levels of trust. 1

Resolution-focused Conflict / Managed conflict
There are some very specific cases in which conflict can be beneficial. Workplace conflicts are not productive. Conflicts produce stress. Researchers have started to focus more on managing the whole context in which conflicts occur, both before and after the behavioral stage of conflict occurs. Researchers, including those who had strongly advocated the interactionist view, have begun to recognize some problems with encouraging conflict. There are some very specific cases in which conflict can be beneficial. However, workplace conflicts are not productive, they take time away from job tasks or interacting with customers, and hurt feelings and anger often linger after conflicts appear to be over. People seldom can wall off their feelings into neat categories of “task” or “relationship” disagreements, so task conflicts sometimes escalate into relationship conflicts. Conflicts produce stress, which may lead people to become more close-minded and adversarial. Studies of conflict in laboratories also fail to take account of the reductions in trust and cooperation that occur even with relationship conflicts. Longer-term studies show that all conflicts reduce trust, respect, and cohesion in groups, which reduces their long-term viability. In light of these findings, researchers have started to focus more on managing the whole context in which conflicts occur, both before and after the behavioral stage of conflict occurs. A growing body of research suggests we can minimize the negative effects of conflict by focusing on preparing people for conflicts, developing resolution strategies, and facilitating open discussion. 1

Outline the conflict process
In Stage I of the Conflict Process potential opposition or incompatibility (See Exhibit 14-1) is present. Communication as a source of conflict represents those opposing forces that arise from semantic difficulties, misunderstandings, and “noise” in the communication channels. Differing word connotations, jargon, insufficient exchange of information, and noise in the communication channel are all barriers to communication and potential antecedents to conflict. The potential for conflict increases when either too little or too much communication takes place. An increase in communication is functional up to a point, after which it is possible to over communicate, with a resultant increase in the potential for conflict. The term structure includes variables such as size, degree of specialization, jurisdictional clarity, member-goal compatibility, leadership styles, reward systems, and the degree of dependence. Size and specialization act as forces to stimulate conflict. The larger the group and more specialized its activities, the greater the likelihood of conflict. The potential for conflict is greatest where group members are younger and turnover is high. The greater the ambiguity in responsibility for actions lies, the greater the potential for conflict. The diversity of goals among groups is a major source of conflict. When groups within an organization seek diverse ends, some of which are inherently at odds, opportunities for conflict increase Reward systems, too, are found to create conflict when one member’s gain is at another’s expense. Finally, if a group is dependent on another group, opposing forces are stimulated. Personal Variables include personality, emotions, and values. Personality does appear to play a role in the conflict process: some people just tend to get into conflicts a lot. In particular, people high in the personality traits of disagreeableness, neuroticism, or self-monitoring are prone to tangle with other people more often, and to react poorly when conflicts occur. Emotions can also cause conflict. 1

In Stage II we see Cognition and Personalization characteristics. Antecedent conditions lead to conflict only when the parties are affected by and aware of it. Conflict is personalized when it is felt and when individuals become emotionally involved. This stage is where conflict issues tend to be defined and this definition delineates the possible settlements. Second, emotions play a major role in shaping perceptions. Negative emotions produce oversimplification of issues, reductions in trust, and negative interpretations of the other party’s behavior. Positive feelings increase the tendency to see potential relationships among the elements of a problem, to take a broader view of the situation, and to develop more innovative solutions. 1

In Stage III Intentions enter. Intentions are decisions to act in a given way. Why are intentions separated out as a distinct stage? Merely one party attributing the wrong intentions to the other escalates a lot of conflicts. One author’s effort to identify the primary conflict-handling intentions is represented in Exhibit 14–2 is along two dimensions. First is Cooperativeness which is “the degree to which one party attempts to satisfy the other party’s concerns.” Second is Assertiveness which is “the degree to which one party attempts to satisfy his or her own concerns.” 1

Conflict Management Techniques
This brings us to techniques of conflict management. Exhibit 14-4 lists the major resolution and stimulation techniques that allow managers to control conflict levels. We have already described several as conflict-handling intentions. Under ideal conditions, a person’s intentions should translate into comparable behaviors. 1

Managing Functional Conflict One of the keys to minimizing counterproductive conflicts is recognizing when there really is a disagreement. Successful conflict management recognizes these different approaches and attempts to resolve them by encouraging open, frank discussion focused on interests rather than issues. Managing Functional Conflict isn’t easy. But, If managers recognize that in some situations conflict can be beneficial, what can they do to manage conflict effectively in their organizations? One of the keys to minimizing counterproductive conflicts is recognizing when there really is a disagreement. Many apparent conflicts are due to people using different language to discuss the same general course of action. For example, someone in marketing might focus on "distribution problems,” while someone from operations will talk about “supply chain management” to describe essentially the same issue. Successful conflict management recognizes these different approaches and attempts to resolve them by encouraging open, frank discussion focused on interests rather than issues (we’ll have more to say about this when we contrast distributive and integrative bargaining styles). Another approach is to have opposing groups pick parts of the solution that are most important to them and then focus on how each side can get its top needs satisfied. Neither side may get exactly what it wants, but both sides will get the most important parts of its agenda. Groups that resolve conflicts successfully discuss differences of opinion openly and are prepared to manage conflict when it arises. The most disruptive conflicts are those that are never addressed directly. An open discussion makes it much easier to develop a shared perception of the problems at hand; it also allows groups to work toward a mutually acceptable solution. Managers need to emphasize shared interests in resolving conflicts, so groups that disagree with one another don’t become too entrenched in their points of view and start to take the conflicts personally. Groups with cooperative conflict styles and a strong underlying identification to the overall group goals are more effective than groups with a more competitive style. Differences across countries in conflict resolution strategies may be based on collectivistic tendencies and motives. Collectivist cultures see people as deeply embedded in social situations, whereas individualist cultures see them as autonomous. As a result, collectivists are more likely to seek to preserve relationships and promote the good of the group as a whole. They will avoid direct expression of conflicts, preferring indirect methods for resolving differences of opinion. Collectivists may also be more interested in demonstrations of concern and working through third parties to resolve disputes, whereas individualists will be more likely to confront differences of opinion directly and openly. Some research does support this theory. Compared to collectivist Japanese negotiators, their more individualist U.S. counterparts are more likely to see offers from their counterparts as unfair and to reject them. Another study revealed that whereas U.S. managers were more likely to use competing tactics in the face of conflicts, compromising and avoiding are the most preferred methods of conflict management in China. Interview data, however, suggests top management teams in Chinese high-technology firms prefer collaboration even more than compromising and avoiding. 1

Groups that resolve conflicts successfully discuss differences of opinion openly. The most disruptive conflicts are those that are never addressed directly. Managers need to emphasize shared interests in resolving conflicts. Groups with cooperative conflict styles and an underlying identification to group goals are more effective than groups with a more competitive style. Groups that resolve conflicts successfully discuss differences of opinion openly and are prepared to manage conflict when it arises. The most disruptive conflicts are those that are never addressed directly. An open discussion makes it much easier to develop a shared perception of the problems at hand; it also allows groups to work toward a mutually acceptable solution. Managers need to emphasize shared interests in resolving conflicts, so groups that disagree with one another don’t become too entrenched in their points of view and start to take the conflicts personally. Groups with cooperative conflict styles and a strong underlying identification to the overall group goals are more effective than groups with a more competitive style. 1

Contrast distributive and integrative bargaining
LO 5 An example of distributive bargaining is buying a car: You go out to see the car. It is great and you want it. The owner tells you the asking price. You do not want to pay that much. The two of you then negotiate over the price. Its most identifying feature is that it operates under zero-sum conditions. The essence of distributive bargaining is negotiating over who gets what share of a fixed pie. (See Exhibit 14-6) By fixed pie, we mean a set amount of goods or services to be divvied up. When the pie is fixed, or the parties believe it is, they tend to bargain distributively. 1

LO 5 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall The most widely cited example of distributive bargaining is in labor-management negotiations over wages. The essence of distributive bargaining is depicted in Exhibit 14–6. Parties A and B represent two negotiators. Each has a target point that defines what he or she would like to achieve. Each also has a resistance point, which marks the lowest outcome that is acceptable. The area between these two points makes up each one’s aspiration range. As long as there is some overlap between A and B’s aspiration ranges, there exists settlement range where each one’s aspirations can be met. 1

LO 5 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall When engaged in distributive bargaining, research consistently shows one of the best things you can do is make the first offer, and make it an aggressive one. Another distributive bargaining tactic is revealing a deadline. When engaged in distributive bargaining, research consistently shows one of the best things you can do is make the first offer, and make it an aggressive one. One reason for this is that making the first offer shows power; individuals in power are much more likely to make initial offers, speak first at meetings, and thereby gain the advantage. Another reason, the anchoring bias, was mentioned in Chapter 6. People tend to fixate on initial information. A savvy negotiator sets an anchor with the initial offer, and scores of negotiation studies show that such anchors greatly favor the person who sets it. Another distributive bargaining tactic is revealing a deadline. Negotiators who reveal deadlines speed concessions from their negotiating counterparts, making them reconsider their position. And although negotiators don’t think this tactic works, in reality, negotiators who reveal deadlines do better. 1

LO 5 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall In contrast to distributive bargaining, integrative bargaining assumes one or more of the possible settlements can create a win–win solution. Both parties must be engaged for it to work. Integrative bargaining, in general, is preferable to distributive bargaining. Distributive bargaining, on the other hand, leaves one party a loser. In contrast to distributive bargaining, integrative bargaining operates under the assumption that one or more of the possible settlements can create a win–win solution. Both parties must be engaged for it to work In terms of intra-organizational behavior, all things being equal, integrative bargaining is preferable to distributive bargaining. Because integrative bargaining builds long-term relationships and facilitates working together in the future, it bonds negotiators and allows each to leave the bargaining table feeling victorious. Distributive bargaining, on the other hand, leaves one party a loser. It tends to build animosities and deepens divisions. 1

LO 5 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Why do we not see more integrative bargaining in organizations? The answer lies in the conditions necessary for this type of negotiation to succeed. Parties who are open with information and candid about their concerns A sensitivity by both parties to the other’s needs The ability to trust one another A willingness by both parties to maintain flexibility Why do we not see more integrative bargaining in organizations? The answer lies in the conditions necessary for this type of negotiation to succeed. The following must be present. First is parties who are open with information and candid about their concerns. Second is A sensitivity by both parties to the other’s needs. Third if the ability to trust one another. And last is a willingness by both parties to maintain flexibility. 1

LO 5 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Compromise might be your worst enemy in negotiating a win-win agreement. The reason is that compromising reduces the pressure to bargain integratively. Finally, you should realize that compromise might be your worst enemy in negotiating a win-win agreement. The reason is that compromising reduces the pressure to bargain integratively. After all, if you or your opponent caves in easily, it doesn’t require anyone to be creative to reach a settlement. Thus, people end up settling for less than they could have obtained if they had been forced to consider the other party’s interests, trade off issues, and be creative. Think of the classic example in which two sisters are arguing over who gets an orange. Unknown to them, one sister wants the orange to drink the juice, whereas the other wants the orange peel to bake a cake. If one sister simply capitulates and gives the other sister the orange, they will not be forced to explore their reasons for wanting the orange, and thus they will never find the win-win solution: They could each have the orange because they want different parts of it! 1

Apply the five steps of the negotiation process
The first step in the negotiation process is preparation and planning. Do your homework. What is the nature of the conflict? What is the history leading up to this negotiation? Who is involved, and what are their perceptions of the conflict? What do you want from the negotiation? What are your goals? Once you have gathered your information, use it to develop a strategy. Determine your and the other side’s Best Alternative To a Negotiated Agreement (BATNA). Your BATNA determines the lowest value acceptable to you for a negotiated agreement. Any offer you receive that is higher than your BATNA is better than an impasse. 1

Second step is to create a Definition of Ground Rules. Who will do the negotiating? Where will it take place? What time constraints, if any, will apply? To what issues will negotiation be limited? Will there be a specific procedure to follow if an impasse is reached? During this phase, the parties will also exchange their initial proposals or demands. The third step is to focus on clarification and justification. When initial positions have been exchanged, explain, amplify, clarify, bolster, and justify your original demands. This need not be confrontational. You might want to provide the other party with any documentation that helps support your position. 1

The fourth step is bargaining and problem solving. The essence of the negotiation process is the actual give-and-take in trying to hash out an agreement. Concessions will undoubtedly need to be made by both parties. And the fifth step is closure and implementation. Here is formalizing the agreement that has been worked out and developing any procedures that are necessary for implementation and monitoring Major negotiations will require hammering out the specifics in a formal contract. For most cases, however, closure of the negotiation process is nothing more formal than a handshake. 1

Managing Cultural Diversity
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Communication From Chapter 11

After studying this chapter you should be able to:
Identify the main functions of communication. Describe the communication process and distinguish between formal and informal communication. Contrast downward, upward, and lateral communication, and provide examples of each. Contrast oral, written, and nonverbal communication. Analyze the advantages and challenges of electronic communication. Show how channel richness underlies the choice of communication channel. Identify common barriers to effective communication. Show how to overcome the potential problems in cross- cultural communication. We begin this chapter with a definition of the nine learning objectives defined for chapter’s contents. We will discuss each of these in some detail.

Identify the main functions of communication
Control Information Motivation Emotional Expression Communication is more than merely imparting meaning. An idea, no matter how great, is useless until it is transmitted and understood by others. It must include both the transference and the understanding of meaning. There are four major functions of communication control, motivation, emotional expression, and information.

Control - Organizations have authority hierarchies Formal guidelines that employees are required to follow. Informal communication also controls behavior. When work groups tease or harass a member who produces too much, they are informally communicating with, and controlling, the member’s behavior. Communication acts to control member behavior in several ways. First, organizations have authority hierarchies and formal guidelines that employees are required to follow. Informal communication also controls behavior. When work groups tease or harass a member who produces too much, they are informally communicating with, and controlling, the member’s behavior.

Motivation Clarifies to employees what is to be done, how well they are doing, and what can be done to improve performance. The formation of specific goals, feedback on progress toward the goals, and reinforcement of desired behavior all stimulate motivation and require communication. Communication fosters motivation by clarifying to employees what is to be done, how well they are doing, and what can be done to improve performance. The formation of specific goals, feedback on progress toward the goals, and reinforcement of desired behavior all stimulate motivation and require communication.

LO 1 Emotional Expression Provides a release for the emotional expression of feelings and for fulfillment of social needs. For many employees, their work group is a primary source for social interaction. Communication provides a release for the emotional expression of feelings and for fulfillment of social needs. For many employees, their work group is a primary source for social interaction.

LO 1 Information Communication facilitates decision-making. It provides information by transmitting the data to identify and evaluate optional choices. Communication facilitates decision-making. It provides information by transmitting the data to identify and evaluate optional choices.

Describe the communication process and distinguish between formal and informal communication
LO 2 The communication model is made up of eight parts: the source, encoding, the message, the channel, decoding, the receiver, noise, and feedback.The source initiates a message by encoding a thought. The message is the actual physical product from the source. The channel is the medium through which the message travels. The receiver is the object to whom the message is directed. Decoding is the process where the symbols in the message must be translated into a form that can be understood by the receiver. The receiver is limited by his/her skills, attitudes, knowledge, and social-cultural system. Noise represents communication barriers that distort the clarity of the message. Feedback is the check on how successful we have been in transferring our messages as originally intended.

Contrast downward, upward, and lateral communication, and provide examples of each
LO 3 Downward Communication Flows from one level to a lower level. Purpose is to assign goals, provide instructions, communicate policies and procedures, provide feedback. Downward communicationmust explain the reasons why a decision was made. It has a one-way nature. Downward Communication is when communication flows from one level of a group organization to a lower level is a downward communication. This is typically what we think of when managers communicate with workers. Its purpose is to assign goals, provide instructions, communicate policies and procedures, provide feedback, etc. It does not have to be face-to-face or an oral communication.When engaging in downward communication, managers must explain the reasons why a decision was made.Another problem in downward communication is its one-way nature; generally, managers inform employees but rarely solicit their advice or opinions.The best communicators explain the reasons behind their downward communications but also solicit communication from the employees they supervise.

LO 3 Upward Communication Flows to a higher level. Provide feedback to higher-ups, inform them of progress, and relay current problems. To engage in effective upward communication. Try to reduce distractions. Communicate in headlines, not paragraphs. Prepare an agenda to make sure you use your boss’s attention well. Upward communication flows to a higher level in the group or organization. It is used to provide feedback to higher-ups, inform them of progress, and relay current problems. Examples of upward communication include performance reports prepared by lower management for review by middle and top management, suggestion boxes, employee attitude surveys.To engage in effective upward communication try to reduce distractions. For example, meet in a conference room if you can, rather than your boss’s office or cubicle, Communicate in headlines, not paragraphs. Your goal is to get your boss’s attention, not to engage in a meandering discussion.Support your headlines with actionable items. That is, what you believe should happen.Prepare an agenda to make sure you use your boss’s attention well.

LO 3 Lateral Communication When communication takes place among members of the same work group, among members of work groups at the same level, among managers at the same level, or among any horizontally equivalent personnel, horizontal communications are often necessary to save time and facilitate coordination. Lateral Communication is when communication takes place among members of the same work group, among members of work groups at the same level, among managers at the same level, or among any horizontally equivalent personnel, horizontal communications are often necessary to save time and facilitate coordination.In some cases, these lateral relationships are formally sanctioned. Often, they are informally created to short-circuit the vertical hierarchy and expedite action. They can create dysfunctional conflicts when the formal vertical channels are breached, when members go above or around their superiors to get things done, or when bosses find out that actions have been taken or decisions made without their knowledge.

Contrast oral, written, and nonverbal communication
LO 4 Oral Communication The chief means of conveying messages. Speeches, formal one-on-one and group discussions, and informal rumor mill or grapevine are popular forms of oral communication. Advantages are speed and feedback. A disadvantage arises when the message must be passed through a number of peopleproducing distortion. Oral communication is the chief means of conveying messages. Speeches, formal one-on-one and group discussions, and informal rumor mill or grapevine are popular forms of oral communication. Advantages or oral communication are speed and feedback. A major disadvantage arises when the message must be passed through a number of people. This increases the potential for distortion.

LO 4 Written Communication Include memos, letters, electronic mail, faxes, periodicals, bulletin boards. Advantages include that they are tangible and verifiable. Drawbacks include: time-consuming, lack of feedback, and no guarantee of receipt. Written communications include memos, letters, electronic mail, faxes, periodicals, bulletin boards.Advantages include that they are tangible and verifiable. A written record is available for later use. People are more careful when communication is via written word. Drawbacks include that it is time-consuming, has a lack of feedback, and has no guarantee of receipt.

LO 4 Nonverbal Communication We cannot NOT communicate nonverbally It includes body movements, the intonations or emphasis we give to words, facial expressions, and the physical distance between the sender and receiver. Every time we deliver a verbal message, we also impart a nonverbal message. Sometimes the nonverbal component may stand alone. No discussion of communication would thus be complete without consideration of nonverbal communication,which includes body movements, the intonations or emphasis we give to words, facial expressions, and the physical distance between the sender and receiver.

LO 4 Every body movement has meaning, and no movement is accidental. We act out our state of being with body language. Most important messages body language are: the extent to which we like another and are interested in his or her views. the perceived status between a sender and receiver. We could argue that every body movement has meaning, and no movement is accidental, although some are unconscious. We act out our state of being with nonverbal body language. The two most important messages body language conveys are the extent to which we like another and are interested in his or her views and the perceived status between a sender and receiver.

LO 4 We’re more likely to position ourselves closer to people we like and touch them more often. A body position or movement can communicate something of the emotion behind a message, but when it is linked with spoken language, it gives fuller meaning to a sender’s message. There is no record of nonverbal communication. We’re more likely to position ourselves closer to people we like and touch them more often. Similarly, if you feel you’re of higher status than another, you’re more likely to display body movements,such as crossed legs or a slouched seated position,that reflect a casual and relaxed manner. A body position or movement can communicate something of the emotion behind a message, but when it is linked with spoken language, it gives fuller meaning to a sender’s message. If you read the verbatim minutes of a meeting, you wouldn’t grasp the impact of what was said the same way as if you had been there or could see the meeting on video. There is no record of nonverbal communication.

LO 4 The emphasis given to words or phrases is missing. Exhibit 11-2 illustrates how intonations can change the meaning of a message. Facial expressions also convey meaning.

LO 4 Physical distance also has meaning. What is considered proper spacing between people largely depends on cultural norms. A businesslike distance in some European countries feels intimate in many parts of North America. Distance may indicate aggressiveness or sexual interest or it may signal disinterest or displeasure with what is being said. Physical distance also has meaning. What is considered proper spacing between people largely depends on cultural norms.A businesslike distance in some European countries feels intimate in many parts of North America. If someone stands closer to you than is considered appropriate, it may indicate aggressiveness or sexual interest; if farther away, it may signal disinterest or displeasure with what is being said

LO 4 There are three common small-group networks: the chain, wheel, and all-channel. SeeExhibit 11-3.The chain rigidly follows the formal chain of command. The wheel relies on the leader to act as the central conduit for all the group’s communication. The all-channel network permits all group members to actively communicate with each other.

LO 4 The effectiveness of each network depends on the dependent variable with which you are concerned. No single network will be best for all occasions. See Exhibit 11–4.

LO 4 The Grapevine A recent survey found that 75 percent of employees hear about matters first through rumors on the grapevine. A recent report shows that grapevine or word-of- mouth information from peers about a company has important effects on whether job applicants join an organization. The grapevine is a unique aspect of oral communication in organizations. A recent survey found that 75 percent of employees hear about matters first through rumors on the grapevine. A recent report shows that grapevine or word-of-mouth information from peers about a company has important effects on whether job applicants join an organization. It’s frequently assumed rumors start because they make good gossip. This is rarely the case. Rumors emerge as a response to situations that are important to us, when there is ambiguity, and under conditions that arouse anxiety. Certainly the grapevine is an important part of any group or organization communication network and is well worth understanding. It gives managers a feel for the morale of their organization, identifies issues employees consider important, and helps tap into employee anxieties.

LO 4 Althoughthe grapevine may not be sanctioned or controlled by the organization, it can be understood. Can managers entirely eliminate rumors? They can try to manage them, What they should do is minimize the negative consequences of rumors by limiting their range and impact. Exhibit 11-5 offers a few practical suggestions

Analyze the advantages and challenges of electronic communication
An indispensible–and in about 71 percent of cases, the primary–medium of communication. Includes , text messaging, networking software, bogs, and video conferencing. Electronic Communication is an indispensible component of organizational life today, In about 71 percent of organizations it is the the primarymedium of communication. EC includes , text messaging, networking software, bogs, and video conferencing.

Transmits and receives text and documents. Growth has been significant. Advantages to usage. Quickly written, edited, and stored. Distributed to one person or thousands. Recipients can read them at their own convenience. Cost is a fraction of other methods. uses the Internet to transmit and receive computer-generated text and documents. Growth has been significant. Common belief is that people are being swamped with s. Recent study shows that majority of Americans who access at work, receive 10 or fewer s per day. The advantages to usage include messages can be quickly written, edited, and stored, they can be distributed to one person or thousands with a click of a mouse, recipients can read them at their own convenience, and the cost of sending formal messages to employees is a fraction of the cost of printing, duplicating, and distributing a comparable letter or brochure.

Drawbacks to usage. Misinterpreting the message. Communicating negative messages. Time-consuming nature of . Limited expression of emotions. Privacy concerns. Drawbacks to usage are potentially many. First is misinterpreting the message. The potential to misinterpret is great. One research team at New York University found we can accurately decode an ’s intent and tone only 50 percent of the time. Communicating negative messages is a problem. may not be the best way to communicate negative information. When Radio Shack decided to lay off 400 employees, it drew an avalanche of scorn inside and outside the company by doing it via . Employees need to be careful communicating negative messages via , too. Justin Deal, age 22, wrote an critical of some strategic decisions made by his employer, pharmaceutical giant Kaiser Permanente, and questioning the financing of several information technology projects. Within hours, Deal’s computer was seized; he was later fired. Third is the time-consuming nature of . An estimated 62 trillion s are sent every year, of which approximately 60 percent, or 36 trillion. A survey of Canadian managers revealed 58 percent spent 2 to 4 hours per day reading and responding to s. The average worker checks his or her 50 times a day.To help control the time demand, experts suggest the following strategies. One, Don’t check in the morning. Two,Check in batches. Three, unsubscribe form inconsequential list serve groups. Fourth, Stop sending yourself. Five,Declare bankruptcy and just throw them away. disadvantage includes the limited expression of emotions in the communication. We tend to think of as a sort of sterile, faceless form of communication. Some researchers say the lack of visual and vocal cues means emotionally positive messages, like those including praise, will be seen as more emotionally neutral than the sender intended. s are often highly emotional. tends to have a disinhibiting effect on people; without the recipient’s facial expression to temper their emotional expression, senders write things they’d never be comfortable saying in person. If you find yourself angry or upset as you write an , save it as a draft, and look at it again once you are on a more even keel. When others send flaming messages, remain calm and try not to respond in kind. And, as hard as it might sometimes be, try to see the flaming message from the other party’s point of view. And lastly are privacy concerns. There are two privacy issues with . First, your s may be, and often are, monitored. Second, you need to exercise caution in forwarding from your company’s account to a personal, or “public” (for example, Gmail, Yahoo!, MSN), account. Some researchers say the lack of visual and vocal cues means emotionally positive messages, like those including praise, will be seen as more emotionally neutral than the sender intended.

Instant Messaging and Text Messaging Like , instant messaging (IM) and text messaging (TM) use electronic media. Unlike , though, IM and TM either occur in real time (IM) or use portable communication devices (TM). The growth of TM has been spectacular. Despite their advantages, IM and TM aren’t going to replace . The second category of electronic communication is Instant Messaging and Text Messaging. Like , instant messaging (IM) and text messaging (TM) use electronic media.Unlike , though, IM and TM either occur in real time (IM) or use portable communication devices (TM).In just a few years, IM and TM have become pervasive. IM is usually sent via desktop or laptop computer, whereas TM is transmitted via cellphones or handheld devices such as BlackBerrys. The growth of TM has been spectacular. In 2001, for instance, just 8 percent of U.S. employees were using it.Now that number is more than 50 percent because IM and TM represent fast and inexpensive means for managers to stay in touch with employees and for employees to stay in touch with each other. Despite their advantages, IM and TM aren’t going to replace . is still probably a better device for conveying long messages that must be saved. IM is preferable for one- or two-line messages that would just clutter up an inbox.

Social Networking Nowhere has communication been more transformed than in networking. More than 600 million users have created accounts at Facebook. The research and advisory firm Gartner Inc. estimates that social networking will soon replace as the primary form of business communication for 20 percent or more of business users. Nowhere has communication been more transformed than in social networking. With the growth of social networking platforms such as Facebook and Linkedin. More than 600 million users have created accounts at Facebook. Individuals older than age 25 are now its fastest-growing group of users. In a desire to maintain control over employee use of social networking for professional purposes, many organizations have developed their own in-house social networking applications. The research and advisory firm Gartner Inc. estimates that social networking will soon replace as the primary form of business communication for 20 percent or more of business users.Remember that a prospective employer might check your Facebook entries.Some entrepreneurs have developed software that mines such Web sites for companies or individuals that want to check up on a job applicant or potential date.

Blogs A blog (Web log) is a Web site about a single person or company. Twitter is a hybrid social networking service that allows users to post “microblog” entries to their subscribers about any topic, including work. A blog orWeb log is a Web site about a single person or company. Experts estimate that more than 156 million blogs now exist. Millions of U.S. workers have blogs. And, of course, many organizations and organizational leaders have blogs that speak for the organization. Twitter is a hybrid social networking service that allows users to post “microblog” entries to their subscribers about any topic, including work. Many organizational leaders send Twitter messages (“tweets”), but they can also come from any employee about any work topic, leaving organizations with less control over the communication of important or sensitive information. Although some companies have policies governing the content of blogs and Twitter feeds, many don’t, and many posters say they have blogged or tweeted comments that could be construed as harmful to their company’s reputation. Many think their personal blogs are outside their employer’s purview, but if someone else in the company happens to read a critical or negative blog entry or post, there is nothing to keep him or her from sharing that information with others, and the employee could be dismissed as a result. One legal expert notes, “Employee bloggers mistakenly believe the First Amendment gives them the right to say whatever they want on their personal blogs. Wrong!” Also, beware of posting personal blog entries from work. More than three-quarters of employers actively monitor employees’ Web site connections. In short, if you are going to have a personal blog, maintain a strict work–personal “firewall.”

Video Conferencing Video conferencing permits employees in an organization to have meetings with people at different locations. Video conferencing technology, in effect, allows employees to conduct interactive meetings without the necessity of being physically in the same location. Video conferencing permits employees in an organization to have meetings with people at different locations.Video conferencing technology, in effect, allows employees to conduct interactive meetings without the necessity of being physically in the same location.

Show how channel richness underlies the choice of communication channel
Recent research has found that channels differ in their capacity to convey information, see Exhibit 11–6. Some are rich in that they have the ability to handle multiple cues simultaneously, facilitate rapid feedback, and be very personal. As Exhibit 11-6 illustrates, face-to-face conversation scores highest in channel richness because it transmits the most information per communication episode using multiple information cues such as words, postures, facial expressions, gestures, intonations, immediate feedback,both verbal and nonverbal, and the personal touch of being present. Others are lean in that they score low on these factors.Impersonal written media such as formal reports and bulletins rate lowest in richness. The choice of one channel over another depends on whether the message is routine or nonroutine. Routine messages tend to be straightforward and have a minimum of ambiguity. Nonroutine messages tend to be complicated and have the potential for misunderstanding. Routine messages can efficiently be communicated through channels that are lower in richness. However, nonroutine messages can effectively be communicated only by selecting rich channels.

Identify common barriers to effective communication
Filtering Selective Perception Information Overload There are many barriers to effective communication. Let’s start with three. Filtering refers to a sender’s purposely manipulating information so it will be seen as more favorable by the receiver. For example, telling the boss what she wants to hear. The more levels in an organization’s structure, the more opportunities there are for filtering. Being reluctant to give bad news, or trying to please one’s boss distorts upward communications. Selective Perception describes when receivers in their communication process selectively see and hear based on their needs, motivations, experience, background, and other personal characteristics. Receivers project their interests and expectations into communications as they decode them. Information Overload is when the information we have to work with exceeds our processing capacity, the result is information overload. The result is they tend to select out, ignore, pass over, or forget information. Or they may put it aside until the overload situation is over. The result is lost information and less effective communication.

Emotions Language Silence Our next group begins with Emotion. These are how a receiver feels at the time a message is received will influence how he or she interprets it. Extreme emotions are likely to hinder effective communication. During those times we are most likely to disregard objective thinking and substitute emotions for judgments. The next category is Language. Words mean different things to different people. Individuals interpret meanings in different ways. For example, incentives and quotas are often perceived as implying manipulation causing resentment among lower levels of the organization. English, our common language, is far from uniform in usage. If we knew how each of us modified the language, we could minimize communication difficulties, but we usually don’t know. Senders tend to assume the words and terms they use mean the same to the receiver as to them. This assumption is often incorrect. Then we see silence as a barrier. It’s easy to ignore silence or lack of communication, precisely because it is defined by the absence of information. Research suggests silence and withholding communication are both common and problematic. One survey found that more than 85 percent of managers reported remaining silent about at least one issue of significant concern. Employee silence means managers lack information about ongoing operational problems. And silence regarding discrimination, harassment, corruption, and misconduct means top management cannot take action to eliminate this behavior. Finally, employees who are silent about important issues may also experience psychological stress. Silence is less likely where minority opinions are treated with respect, workgroup identification is high, and high procedural justice prevails. Practically, this means managers must make sure they behave in a supportive manner when employees voice divergent opinions or concerns, and they must take these under advisement. One act of ignoring or belittling an employee for expressing concerns may well lead the employee to withhold important future communication.

Communication Apprehension: The experience of undue tension or anxiety in oral and/or written communication. Lying An estimated five-to-twenty percent of the population suffer from communication apprehension. They experience undue tension or anxiety in oral and/or written communication. They may find it difficult to talk with others face-to-face or on the telephone. Studies show oral-communication apprehensives avoid situations, such as teaching, for which oral communication is a dominant requirement. But almost all jobs require some oral communication. Of greater concern is evidence that high oral-communication apprehensives distort the communication demands of their jobs in order to minimize the need for communication. So be aware that some people severely limit their oral communication and rationalize their actions by telling themselves communicating isn’t necessary for them to do their job effectively. The final barrier to effective communication is outright misrepresentation of information, or lying. People differ in their definition of what constitutes a lie. While the definition of a lie will continue to befuddle both ethicists and social scientists, there is no denying the prevalence of lying. In one diary study, the average person reported telling one to two lies per day, with some individuals telling considerably more. Compounded across a large organization, this is an enormous amount of deception happening every single day! Evidence also shows that people are more comfortable lying over the phone than face-to-face and more comfortable lying in s than when they have to write with pen and paper. Despite a great deal of investigation, research generally suggests most people are not very good at detecting deception in others. The problem is, there are no nonverbal or verbal cues unique to lying—averting your gaze, pausing, and shifting your posture can also be signals of nervousness, shyness, or doubt. Most people who lie take a number of steps to guard against being detected, so they might deliberately look a person in the eye when lying because they know that direct eye contact is (incorrectly) assumed to be a sign of truthfulness. Finally, many lies are embedded in truths; liars usually give a somewhat true account with just enough details changed to avoid detection. In sum, the frequency of lying and the difficulty in detecting liars makes this an especially strong barrier to effective communication in organizations.

Show how to overcome the potential problems in cross-cultural communication
Cultural Barriers: Caused by semantics. Words mean different things to different people. Some words do not translate between cultures. Caused by word connotations. Words imply different things in different languages. Caused by tone differences. Caused by differences in tolerance for conflict and methods for resolving conflicts. Cultural Barriers to communication can be summed as follows. First, there are barriers caused by semantics. Words mean different things to different people. Some words do not translate between cultures. Finnish—the word sisu is untranslatable into English. It means something akin to “guts” or “dogged persistence.” English terms such as efficiency, free market, and regulation are not directly translatable into Russian. Second, there are barriers caused by word connotations. Words imply different things in different languages. The Japanese word hai means “yes,” but may mean “yes, I’m listening,” not “yes, I agree.” Third, there are barriers caused by tone differences. In some cultures, language is formal; in others, it is informal. The tone changes depending on the context. Fourth, there are differences in tolerance for conflict and methods for resolving conflicts.Individuals from individualist cultures tend to be more comfortable with direct conflicts and will make the source of their disagreements overt. Collectivists are more likely to acknowledge conflict only implicitly and avoid emotionally charged disputes. They may attribute conflicts to the situation more than to the individuals and therefore may not require explicit apologies to repair relationships, whereas individualists prefer explicit statements accepting responsibility for conflicts and public apologies to restore relationships.

Cultures tend to differ in the importance to which context influences meaning. Countries like China, Korea, Japan, and Vietnam, are high-context cultures. They rely heavily on nonverbal and subtle situational cues when communicating with others. What is not said may be more significant than what is said. A person’s official status, place in society, and reputation carry considerable weight and public apologies to restore relationships. People from Europe and North America reflect their low-context cultures. They rely essentially on words to convey meaning. Body language or formal titles are secondary to spoken and written words.

A Cultural Guide Assume differences until similarity is proven. Emphasize description rather than interpretation or evaluation. Practice empathy. Put yourself in the recipient’s shoes. Treat your interpretations as a working hypothesis. A Cultural Guide to overcome cultural barriers. One assume differences until similarity is proven. Emphasize description rather than interpretation or evaluation. Practice empathy. Put yourself in the recipient’s shoes. And, treat your interpretations as a working hypothesis.

Remember Uncertainty Distortion Ambiguity Incongruities Automatic vs Controlled Barriers to Communication You’ve probably discovered the link between communication and employee satisfaction in this chapter: the less uncertainty, the greater the satisfaction. Distortions, ambiguities, and incongruities between verbal and nonverbal messages all increase uncertainty and reduce satisfaction. The less distortion, the more employees will receive goals, feedback, and other management messages as intended. This, in turn, should reduce ambiguities and clarify the group’s task.Extensive use of vertical, lateral, and informal channels also increases communication flow, reduces uncertainty, and improves group performance and satisfaction.Perfect communication is unattainable. Yet a positive relationship exists between effective communication and worker productivity. Choosing the correct channel, being an effective listener, and using feedback can make for more effective communication.Whatever the sender’s expectations, the message as decoded in the receiver’s mind represents his or her reality. And this reality will determine performance, along with the individual’s level of motivation and degree of satisfaction. Because we gather so much meaning from the way a message is communicated, the potential for misunderstanding in electronic communication is great despite its advantages.We sometimes process messages relatively automatically, while at other times we use a more effortful, controlled process. Make sure you use communication strategies appropriate to your audience and the type of message you’re sending.Finally, by keeping in mind communication barriers such as gender and culture, we can overcome them and increase our communication effectiveness.

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